Kosta Ouzas explains how dollar-cost averaging can backfire in rising markets: you end up buying more shares at higher prices, concentrating your capital near peaks. If you ever need to sell, that "safe" position becomes dangerously exposed when the market turns.
Blindly buying in month after month using so-called DCA can quietly turn from a strong conviction into actually a hidden risk. And when prices rise over time, buying on a schedule, it does feel safe. It feels smart and it feels disciplined. But here's the catch. Each new buy is usually at a high price and your average cost, what it actually does is it creeps up and most of your money ends up getting invested near the very, very, very, very top. And that's just because markets just keep spending more time going up. And that's fine, again, if you never plan to sell, like Saylor. But if you ever need to exit, suddenly your safe strategy, it isn't so safe. Blind DCA works if you never have to sell.
