Looking to reduce risk and maximize long-term returns? The 100-step Dollar-Cost Averaging (DCA) strategy is a powerful method for investors at any level. This approach involves gradually buying and selling assets in small, consistent amounts—helping you stay disciplined and less emotional in volatile markets.
✅ What is the 100-Step Buy and Sell Strategy?
The 100-step investment strategy splits your capital into 100 equal parts. Instead of investing everything at once, you spread your buys or sells across multiple price levels or over time.
🔹 100-Step DCA Buy (DCA-In)
- Definition: Divide your total capital into 100 equal portions and buy incrementally.
- Goal: Lower average cost and reduce entry risk.
- Best for: Volatile or unpredictable markets.
🔹 100-Step DCA Sell (DCA-Out)
- Definition: Sell your holdings in 100 small increments instead of all at once.
- Goal: Take profits gradually while remaining exposed to further upside.
- Best for: Bull markets, retirement withdrawals, or profit-taking strategies.
💸 Example: DCA Buy with $10,000
Say you plan to invest $10,000 in a stock. Instead of buying all at once, you invest $100 per step across 100 intervals.
| Stock Price | Amount Invested | Total Invested | Average Cost |
|---|---|---|---|
| $50 | $100 | $100 | $50.00 |
| $48 | $100 | $200 | $49.00 |
| $46 | $100 | $300 | $48.00 |
✅ As the stock price drops, your average cost decreases, setting you up for better returns when the market recovers.
📉 Example: DCA Sell with 1,000 Shares
Let’s say you own 1,000 shares. You sell 10 shares at a time over 100 different price levels.
| Sell Price | Shares Sold | Cash Received | Shares Remaining |
|---|---|---|---|
| $60 | 10 | $600 | 990 |
| $62 | 10 | $620 | 980 |
| $65 | 10 | $650 | 970 |
✅ This approach lets you lock in profits while staying exposed to potential upside.
🔧 How to Use the 100-Step Strategy
- Use automation tools: Most online brokerages offer recurring investments or conditional orders.
- Plan your entries and exits: Set price targets and amounts in advance.
- Stick to your strategy: Avoid emotional decision-making by automating the process.
- Customize your steps: Use 10, 20, or 100 steps depending on your risk tolerance and portfolio size.
🎯 Key Benefits of the 100-Step DCA Strategy
| DCA Buy Benefits | DCA Sell Benefits |
|---|---|
| Reduces market timing risk | Locks in gains over time |
| Smooths out price volatility | Participates in further price growth |
| Encourages disciplined investing | Provides flexible exit options |
| Ideal for long-term investing | Great for retirement drawdowns |
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