Ever sat on cash, waiting for the 'perfect' time to invest 'cause you're scared of a crash? We call this analysis paralysis. Stop it.
The myth? You need to be a "pro" to time the market. The reality? For most, Dollar Cost Averaging (DCA) is the ultimate cheat code.
The Myth: "I’ll wait for the dip."
People think they can predict when the S&P 500 or FBM KLCI will dip. But in 2025, while "market timers" waited for a crash, the market kept climbing. Major FOMO.
So basically... you invest a fixed amount (e.g., RM200) every month. You buy more units when prices are low, fewer when high. Your cost averages out. Simple.
Table: DCA vs. The "Timing" Trap Comparison
| Month | Price | DCA Investor (Invest RM200) | "Timing" Investor (Wait for Dip) |
|---|---|---|---|
| Month 1 | RM10.00 | Buys 20.0 units | "Too high, I'll wait." (RM0) |
| Month 2 (Dip) | RM8.00 | Buys 25.0 units | "Is this the bottom? Scared." (RM0) |
| Month 3 (Rise) | RM11.00 | Buys 18.1 units | "FOMO! Buying now!" (Buys 54 units) |
| Total Units | 63.1 Units | 54.5 Units | |
| Avg Cost | RM9.50 | RM11.00 |
Step 1: Find Your "DCA Number"
The tea is that DCA fails because people pick a number that's too high and then stop. Find a sustainable "DCA Number"!
The Budget Calculator is your go-to tool. It’s a full-on strategy builder.
How to use it for DCA (TL;DR):
- Log your "Commitments": Be honest with your rent, PTPTN, and 5G plan, no cap.
- Identify the "Investable Surplus": The calculator shows your Discretionary Income. If you have RM500 left over, you should low-key only DCA with 50% of that surplus. Keep the rest as a buffer!
Your 2-Minute Action Plan (It's fire!):
- Calculate: Use the Budget Calculator ASAP to find your monthly investment surplus.
- Automate: Set up a recurring transfer on payday via your banking app or broker. Set it and forget it.
- Ignore the Noise: The goal is long-term wealth. Don't let a "red" day stop your streak!
Ready to start? Use the calculator and drop your monthly 'DCA Number' for 2026!