So, I am a salaried individual whose strategy is to transfer a fixed amount from my monthly salary into my brokerage account and then buy individual stocks whenever my stock analysis says so. Mostly because that's all I can afford after paying my monthly bills. If I want to check my performance against a passive index fund strategy, does it make sense to compare my performance against SP500 say for a year's time ? I think it's not fair because most of my stock picks will be recent investments and not have much time to achieve growth (or even losses). I think a better way would be to compare against a dollar cost averaging (DCA) approach where I would just invest that fixed cash amount in an sp500 fund at the start of every month... This gives different returns than just checking SP500 values on Jan 1 and Dec 31st, but those are just a mirage and the DCA returns are what I would actually be able to achieve If I switched to a passive index fund strategy. I know that involves some spreadsheet work coz I need to enter sp500 fund prices at start of every month and do theoretical calculations..but I have a spreadsheet setup to do that with only monthly inputs needed. Does this sound like a good approach or do you guys have different suggestions ?
Submitted April 19, 2018 at 11:46AM by super_saiyan29 https://ift.tt/2J6aRn5
