Little & often vs buy pricing

Hi all.
Totally new investor here, finding it so hard to start, so much information on the net, some is so confusing. Basically I’m interested in building a dividend portfolio with maybe a couple of tech growth companies, Appl etc. I’m not sure how to start, do I just buy a little each month and not worry about the price or is it best to wait and se if a stock comes down, not sure how to figure out a good buy price yet either. Is the little & often the best way and slowly building up the amount you spend as I slowly learn. Thanks in advance once again.

Dollar cost average basically, buy a little constantly. But don’t be oblivious to the price, if it’s really high in your opinion it might be worth putting less in and keeping that money for when it’s lower. But don’t just wait until it drops lower without cost averaging, you’ll probably miss out on a lot of gains

Here’s a general idea for you that i quite like:

The more confident you are, the more specific you can be.

So in the context of the question you asked, if you’re not confident identifying buy prices, then go little and often and spread your purchases.

In a different context (but just as a way of illustrating the general principle) the more confident you are identifying good companies the more you can afford to take single stocks over ETFs. If you’re less confident, then take broader based things.

A third illustration: suppose you think you know a lot about healthcare and not so much about mining. Now you can afford to buy more healthcare stocks and have more of your porrfolio devoted to them. If you don’t think you know any particular area especially well, then just spread across everything.

1 Like

Anyone new to investing should always start small! Only invest what you can afford to lose. You will need to know what it is you would like to achieve and then have a good plan to do it. If you want to have full control over your portfolio then you will need to put in the time and effort ; unfortunately there is no substitute for that. If you don’t have enough time to devote it to investing then go with low cost ETFs. Also, be under no illusion this is a get rich quick scheme! You will need tonnes and tonnes and tonnes of patience. Don’t be sucked in by the hype either, always do enough research before you buy any stock. There is enough information available to help you on your way, but not all of it will be relevant to you and your circumstances. You just need to have a plan and an idea of what kind of investor you want to become.


It also sounds like you are looking at income investing, then it would be useful if you researched resources on income investing.