Do I need a brokerage account to use ETF.PLAN?

Yes — ETF.PLAN tells you what to buy, but you execute the trades yourself on a platform like Robinhood, eToro, or Interactive Brokers. All are free to open and commission-free for ETFs.

Is my money safe with ETF.PLAN?

Your money never touches ETF.PLAN — we don't hold any funds. You invest directly through your regulated brokerage. We only track what you tell us you bought.

Can I lose money investing in ETFs?

Yes — any investment can go down short term. But over 10 years, the S&P 500 has never had a negative return on a 10-year hold. The ~9% balanced return is a historical average. The longer you hold, the safer it gets.

How much money do I need to start?

ETF.PLAN is designed around $50, $100 or $150/month. Most brokers let you start with as little as $1 using fractional shares. ETF.PLAN itself is free.

Yes, ETF.PLAN is 100% free. The core personalised ETF plan will always be free.

How often do the ETF picks change?

Our scoring engine runs every market day. Picks update weekly based on momentum, stability and trend scores across 42 ETFs.

Home→Dollar-cost averaging

STRATEGY GUIDE · 5 MIN READ

Why you should never try to time the market

Dollar-cost averaging is the strategy of investing the same fixed amount every single month — regardless of whether the market is up, down, or sideways. It sounds boring. It's also why it works.

THE CORE IDEA

Stop trying to find the perfect moment. There isn't one.

Most people wait for the "right time" to invest. They wait for the market to drop, or for the news to get better, or for their situation to feel more stable. Years pass. They never start.

Dollar-cost averaging eliminates this problem entirely. You invest every month, no matter what. When prices are high, you buy less. When prices are low, you buy more. Over time, your average cost per share smooths out — and the compounding does the rest.

How DCA works — a real example

Say you invest $100/month in VOO (S&P 500 ETF). Here's what happens in a volatile 6-month period:

Month	VOO Price	You invest	Shares bought	Total shares
January	$500	$100	0.20	0.20
February	$450	$100	0.22	0.42
March	$400	$100	0.25	0.67
April	$420	$100	0.24	0.91
May	$480	$100	0.21	1.12
June	$520	$100	0.19	1.31

TOTAL INVESTED

$600

PORTFOLIO VALUE (at $520)

$681 (+13.5%)

Even though prices went DOWN in months 2 and 3, you ended up positive because those dips let you accumulate more shares at lower prices. The crash was actually good for you.

Why timing the market doesn't work

Everyone thinks they can spot the bottom. Even professional fund managers — paid millions to do exactly this — mostly fail.

📊

90%

of professional fund managers underperform the S&P 500 index over 10 years (SPIVA report, S&P Global)

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$1M+

that an average investor loses trying to time the market over a 30-year career, vs just investing consistently (Dalbar study)

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10 days

— missing just the 10 best days in the market over 20 years cuts your returns nearly in half. Most of those days happen during crashes, when people are selling, not buying.

The only reliable strategy is to not try to time the market. Invest consistently. Stay in. Let time do its work.

DCA vs lump sum: which wins?

Studies show lump sum investing (putting all your money in at once) outperforms DCA about 2/3 of the time — but only if you actually have a large sum to invest. For most people, DCA wins for two reasons:

Most people don't have a lump sum

If you're building wealth from your salary, you invest what you have each month. DCA isn't a choice — it's the only realistic option for most people starting out.

DCA removes emotion from the equation

When the market drops 20%, most people panic and sell. DCA investors just keep buying. Removing the decision-making is itself a massive advantage.

DCA reduces timing risk

If you invest your lump sum the day before a crash, you lose big. DCA spreads that risk across many months, smoothing out your average purchase price.

What $100/month looks like over time (DCA, 9% avg)

1 year$1,200 in$1,260+$60

3 years$3,600 in$4,146+$546

5 years$6,000 in$7,599+$1,599

10 years$12,000 in$19,497+$7,497

20 years$24,000 in$67,290+$43,290

💡 The gains accelerate over time because your returns generate their own returns. At year 10, your portfolio adds more value each year than the $1,200 you put in. Your money outworks you.

Common questions about DCA

How often should I invest with DCA?

Monthly is ideal for most people — it matches salary cycles and is frequent enough to smooth out volatility. ETF.PLAN is built around monthly investing: we tell you what to buy on the 1st of every month.

Should I stop investing when the market crashes?

No — and this is the hardest part. When markets crash, DCA investors should actually feel good: they're buying more shares at lower prices. The worst thing you can do is stop or sell during a dip.

What if I invest more some months?

That's fine. The core principle is consistency, not a fixed amount. If you can put in $200 one month and $100 the next, both are great. Just don't skip months entirely.

Does DCA work in a bear market?

Yes — especially in a bear market. Each monthly investment buys more shares at lower prices. When the market recovers (historically, it always has), those extra shares multiply your gains.

How is this different from what ETF.PLAN does?

ETF.PLAN implements DCA automatically. We score 42 ETFs daily, pick the best ones for your risk profile, and tell you exactly what to buy each month. You execute on your broker. We handle the strategy.

📅

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What are ETFs?

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