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DCA in is great, but will you DCA out?

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by COINS NEWS 143 Views

First of all, I know that “DCA out” isn’t a perfect name because it’s factually wrong and kind of nonsense depending on how you do it, but it’s the only name I’ve heard for it.

We all know what DCA is, it’s buying at regular intervals using the same amount of money each time to take the emotions out of investing and avoid trying to time the market.

DCA out is taking profits in increments, once again to take the emotions out and not try to time the top.
You can do it following a time frame, like taking 20% out once a week over five weeks (or for the maths buffs, 20%, 25%, 33.33%, 50% and 100%).
Or following the price of your investment, like taking money out every 5k after 80k for BTC (so at 80, 85, 90…)

It’s not as perfect as DCA in because the emotions aren’t completely out of the equation. In most cases you will take profits when you think that the top is near so there is still a notion of timing here too. But I think that it is still a good method to take profits because it relieves a bit of pressure by doing it in a kind of automated way. All you need is to set a plan and have the willpower to follow it.

So how will you follow this to take profits or do you have other plans?

submitted by /u/MaeronTargaryen
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