 Hey what's up B2, I'm Zeke and welcome to The Dream Green Show. This episode is brought to you by Weeble. Sign up now by clicking the link down in the description, deposit $100 and receive two free stocks valued up to $1,600 that is free money. In this video, we're going to talk about DCA, dollars cost averaging and how you can make millions using this strategy. But before we dive into it, make sure that you guys hit the thumbs up button. It helps out this channel more than you can even imagine. But enough talking, let's go ahead and dive straight into the video. Welcome back dreamers, dollars cost averaging is something I've been using for a very long time. Let me read the definition to you guys and then I'll explain exactly what it is. Dollars cost averaging is an investment strategy in which an investor divides up the total amount to be invested across periodic purchases of a target asset in an effort to reduce the impact of volatility on the overall purchase. Yeah, that's the definition. So let me tell you guys exactly what DCA is. All right. So the first way, the easy way is for you guys to just buy into a company, no matter what the price is. If you buy the same company every single week, every Monday, no matter what the price is, that is dollar cost averaging. If the first week you buy this at $100, the second week you buy this at $80, so it went down. Third week is back up to $90, fourth week is at $100. You are buying into this company no matter what the price is, even if it's above the price that you originally bought it at, you are buying into this company no matter what the price point is. And statistics have shown over time, if you buy it into a company consistently, no matter what the price point is, you are going to make a lot of money in the future. I'm going to show you guys at the end of this video exactly how you can make millions of dollars using that first strategy that I just told you guys right now by buying a company at any given price point. The second way that you can use dollars cost averaging is just trying to buy the dips. So if you're buying anytime, let's say you enter a price point is when a market takes a major dip. So that is another way to dollars cost average now. So if you bought one share at $100 and then it goes up to $115, $120, and then two weeks later it shoots down to $80. Then it's below the original price point that you bought it at. And if you're believing in this company, you're going to pick up a lot more shares at $80. If you was willing to invest into this company at $100, you're even more willing to invest into this company at $80. So you'll pick up a couple more shares at $80. It eventually go back up to $100, $110, $120, and it drops all the way back down to $100. You pick up more shares. So that's another way people with dollars cost averaging is that when the market corrects itself and it has a major drop, you pick up a bunch more shares every time that the market has a slight correction or a little crash, you want to pick up more shares. So that's the second way that you could dollar cost average. Your price point on a company that you believe in, don't dollar cost average and keep buying a company that's steadily going downhill if you don't believe into that company. Only dollars cost average if it's a company that you believe in. In the third way is for traders, swing traders, day traders. Let's say you bought one company at $100 and you wanted to take a 10% profit. So that's you want to sell at $110 to make $10 on that one trade. So if you bought at $100 and the price go down to 90, you pick up another share at $90. Now you're bringing down your dollars cost average on the average price that you're paying for that company. So now you have $190 invested. So all that company has to do is go back up to $100 even and you'll make your $10 profit and you don't have to wait for that company to go all the way up to $110 because you got one share at 100. So if it goes back up to 100, that's break even. You bought your second share at 90. So that means it goes back up to $100. That is a profit of $10 and you made your $10 profit on that trade. In another way that people use the strategy is they buy one share. If it dropped 3%, they buy two shares. If it dropped even more, they buy four shares and then they double it down. Every time they'll buy four, they'll buy eight, they'll buy 16. And then all that company has to do is recover just a little bit because the more that you buy at a cheaper price, all that company has to do is recover just a little bit. Now all the way back up to the original price point, just recover a little bit because you bought so many shares at a lower price point. So once it goes up a couple of percent, two, three, four, five percent, you'll have a profit and you don't have to wait for that company to recover all the way back up to your original entry on that price point. So that is the three ways that people use dollar cost averaging. Now as I promised, let me show you guys exactly why people are using dollar cost averaging strategies. I think it's strategy number one to make millions. So let me pull that up right quick. So all of you dreamers that are subscribed to my channel, you know that I invest $200 every single week into the stock market. So that's $800 a month. So we're going to do a prediction over the next 10 years. So let's say if I invest $800 a month into the stock market times 12 months, that's $9,600 a year over the next 10 years. That is $96,000. So to keep that number in your head, $96,000. So let's go ahead and pull up a real life example. All right, so here we are on the portfolio visualizer. We're going to do the last 10 years from 2010 to 2020. And the initial amount that we're going to invest is $96,000. If we made a one-time investment, we did not care about dollar cost averaging at all. All we have was $96,000 and we're going to invest that into one company. We're going to display income, yes, reinvest dividends. And the company we're going to look at is my favorite company AMD and put 100% inside that portfolio and hit analyze portfolio. When we hit analyze, this is us investing one time $96,000 into AMD back in 2010. So if we did that, we will have $900,000. So almost a million, but not a million. And then we show you guys how you can make a million dollars by using dollar cost averaging. So the reason that you did not hit a million is because you bought AMD at a certain price and went down and went down and went up and went down and went up and went down. So all those times that this company was going up and down, right here it went all the way down. Your portfolio went all the way down to $17,000, all the way down to $21,000. But you're not making any other purchases. So you're not dollar cost averaging. You just made a one-time purchase and letting that company ride wasn't a bad decision. You will have almost a million dollars, but not quite. So let me show you guys dollar cost averaging right now. So let's scroll up to the top and say that back in 2010, all we had was $1,000 to invest. But we're going to dollar cost average and invest $800 a month. No matter what the price is, no matter what the price is, we're going to invest $800 at the beginning of the month. So this is us dollar cost averaging, whether the price is high or whether the price is low. We're going to hit analyze portfolio. And the first time we made $900,000, in this time we made $1.8 million. Now you guys see the dollar cost averaging. You will make so much money by buying it to the market when it's up and buying it to the market when it's down. If it's a company that you believe in. Now you don't want a dollar cost average on a company that you don't believe in, only a company that you do believe in, so that you can make the most profit, the most gains from that company by using DCA. So yeah guys, if you made it to the end of this video, I appreciate you. So make sure that you subscribe to this channel so you don't miss out on any future videos down in the comment section. Let me know. Have you ever used dollar cost averaging before? If not, let me know. Are you planning to use it in the future? But other than that, I'm Zeke, bringing you to Dream Green Show and I'm out. Peace.