All in on pay day or daily autoinvest?

As title really filling out my isa, so all just long positions.

Would you autoinvest the lump sum each pay day or would you use the daily option?

Doesn’t matter too much over the long term, meaning over at least 10 years. Daily is better for dealing with volatility so you’ll technically gain closer to the real return of the stock. But if you buy every month, it should average out, so sometimes you buy 3% too high and sometimes 3% too low. But there is more risk in the latter so I would say putting money in every day is better for long term investing, but again shouldn’t be a big difference between the two

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Even moreso if you’re paid weekly or fortnightly.

Personally I set aside a portion of my cash every pay day for various things including investing. Mentally it just feels better to me than investing the same amount split over a daily period. I just like to get it all out of the way and I just know then mentally that what’s in my bank account is for me.

Which is why the autoinvest from free funds will be great, one lump deposit and then you can set up the autoinvest to take it every day if you wanted to with the money coming out of your bank once

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Buy Tesla with all the money! YOLO :rofl:

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I tried out daily for a while but got a bit tired of all the notifications and small amount orders so moved it to a weekly schedule on a Wednesday. over the long term it won’t make much of a difference if you go daily, weekly or monthly besides a bit of luck regarding volatility.

currently going to use whatever leftover cash I have monthly to reduce some 0% debts rather than to invest a tiny bit more chasing the market down xD

I would go for once a week, otherwise you would get too many rows in your bank statement.
Also I think it is easier to manage.

Is that feature coming in? That would be really useful.

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@obrienciaran It’s on it’s way at some point :+1:t2:

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Nice one. Thanks for that. Sounds like a great feature.

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Do we know when auto Invest from free funds is coming in? That would be a great feature. As I am paid monthly that would help my budgeting! One lump sum and then let the weekly auto invest do the rest!

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I feel daily, weekly and even bi weekly is just too risk averse.
In the first place dollar cost averaging is a risk averse tactic to spread out your investments to counter near term bear markets and also just mentally helps you invest.
You need to remember the markets not only go down or sides ways but also up, with up being the norm.

I feel that you would simply leave too much gains on the table unnecessarily. Manage risk yes, but risk equals reward. Always remember that.

To answer the question, all in.
Also I don’t use auto invest, I manually do it each month.

For me personally, despite it all being a long game I’m not a fan of auto invest. I don’t think because of the long game it gives an excuse to just sticking the same amount in at the same time each month.

If you consider it being a long game it’s even more reason not to have the auto invest on. My preference is to have a set amount for my long pie a month but review how the stocks are performing at that time opposed to a simple auto invest.

It’s all personal opinion though and how much attention you wish to give it. But I do also do understand why people use the auto invest.

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Well I guess if you think we are in volatile market then there might be some reason to DCA vs Lump sump.

But in general from most analysis, time in market beats DCA, but from psychological point, it might be easier to DCA as with LS you get this single big payment where next day it might turn “big” red, so you think you missing out la la noise short term.

But anyway there are plenty of good articles, even tho most cover LS vs DCA start of investment, if you had XYZ cash stashed. Salary investment DCA vs LS has even minor effect, but anyway for those that like to read.

https://www.blog.invesco.us.com/should-you-move-to-cash-or-keep-investing-through-a-crisis/

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That’s a pretty interesting article.

It seems to be based on having say 10k to invest and holding some back to invest periodically.

Where as if you get your salary in a month and say dedicate 300 or so to invest for that month. Instead of using the pie settings of set amounts to each company per month is it not better to look at what is strong and weak that month to allocate your 300 on that basis?

Or are you a believer in the amounts set in the pie?

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Maybe allocate 200 in a pie and the other 100 choose it yourself.
Bear in mind that because something has dipped it doesn’t mean that it is cheap, it might just continue to go down.
But yes, I do like to select my investments, more so now that there is so much volatility. Once this crisis is over I think Pies will take pretty much all of my investments.

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Roughly what I do. Got a couple of pies that get 2x a month and then x amount I allocate myself

As a side note, I’m liking pies for auto invest as my ‘anti smoking fund’ since quitting I have an auto invest of how much I would have spent. Excellent encouragement to stay quit

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When you say 2x a month do you mean that’s the amount they return each month?

Good idea on the quit smoking fund!

I have autoinvest just on a pie with a couple of ETFs for my daughter when she’s 18 (and hopefully is more wise than I was with money at that age)

I think he means that he invests in them twice a month.

Nothing gives you free double money each month.

That makes sense, I was going to say it would be a hell of a pie!

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