Can Cost Averaging Method Also Lose Money?

(If you want a quick guide for beginners how to start investing in the Philippine stock market, you can download yourย free ebook here.)
Can Cost Averaging Method Also Lose Money?


Hereโ€™s one question from one investor whoโ€™s curious on how cost averaging can possibly also lead to a decline in your investment.


I have a friend in Canada who invested in mutual funds in 1990s. He lost money even if it was cost-averaging strategy. How can this be possible?


Here is a short answer from our friend Aya Laraya:

Cost Averaging is a strategy to minimize potential losses PROVIDED that the instrument you are cost-averaging is NOT junk. If you cost-average junk, you will still lose money.A Mutual Fund is no guarantee that you will make money and if the Mutual Fund invests in bad securities, then the investors lose money. The biggest assumption in a Mutual Fund is that you ASSUME that the fund manager KNOWS what he is doing. Unfortunately, there are good fund managers and bad fund managers so if you end up with a bad fund manager who invests in bad securities, then you will lose money REGARDLESS of the investment strategy you employ.

The key then is to carefully choose the investment into which youโ€™ll use the cost averaging method.ย 
Make sure that you use its power toย  empower your investments!

You may have the best technique, but if you’re going to take it the wrong way, then it’s futile sticking to the strategy.
Just a sweet note reminder for you.
Have fun and millions investing!


PS: For those who want to join Bo Sanchez’ Truly Rich Club, you can check the details here – ย a powerful guide for your financial wealth and spiritual abundance!
Receive regular stocks update too for your investments in Philippines Stock Market.

PS.Get market updates & stock picks!

Get your quick guide for beginners how to start investing in the Philippine stock market and more practical trading tips and tricks. Simply sign-up below (it's FREE!)

PS. Do you want to invest and earn in US stocks like APPLE, FACEBOOK, AMAZON or GOOGLE?

Explore it Risk-free. Get your Free $๐Ÿญ๐Ÿฌ๐Ÿฌ,๐Ÿฌ๐Ÿฌ๐Ÿฌ ๐—ฃ๐—ฟ๐—ฎ๐—ฐ๐˜๐—ถ๐—ฐ๐—ฒ ๐—”๐—ฐ๐—ฐ๐—ผ๐˜‚๐—ป๐˜ Click here!

Investing in global stocks means checking stock markets of other countries, which allows you to practically diversify in your portfolio.

It's very similar to investing in local stocks, but since we're expanding on geography and other asset classes, we now have more stocks to choose from. Join our FREE webinar to learn more.

Do you want to receive STOCK PICKS and other lessons on money management & business ideas?

Check out Truly Rich Club and receive 14 incredible gifts for FREE, including the opportunity to earn passive income every month!
Click here to learn more.

Did you like this article?

Subscribe to my YouTube channel for more.
Click here.

This Post Has One Comment

Got questions? Leave your comments below.