Dollar-Cost Averaging: The DCA Strategy Suitable for Modern Investors

What is DCA and Why Has It Become a Popular Choice?

As more people become interested in wealth accumulation, many are looking for simple savings methods that don’t require huge initial capital. DCA (Dollar-Cost-Averaging) or systematic investment plan, is a solution that fits modern lifestyles.

This method is based on a simple principle: you invest the same amount of money into stocks or funds of your choice at regular intervals, whether weekly or monthly. The key is consistency, not trying to time the market.

When prices go up, you buy fewer shares; when prices drop, you buy more with the same amount of money. This process helps lower your average cost and reduces the risk of poor timing in investments.

Why is DCA Suitable for Salaried Employees?

The target audience for DCA is clear: people with steady, regular income. When you receive your salary, you can allocate a portion—such as 1,000 to 5,000 THB—to long-term wealth building.

Unlike lump-sum investing, you don’t need to worry about choosing the right time to buy or risking a large payment at once. DCA creates an automatic system that helps you save without having to think about market prices or make complex decisions.

Key Advantages of DCA Stock Savings

1. Small Capital Can Start

DCA investing is designed to be accessible to most people. You don’t need hundreds of thousands of baht; just a steady flow of income. When you get your salary, you can set aside a portion to invest for long-term assets.

2. A Learning Process for Investing

For beginners learning about stocks, DCA helps familiarize you with investment concepts, market volatility, and wealth accumulation without much pressure. You gain real experience without risking large sums of money.

3. Returns Exceed Market Average

While DCA may not offer the highest returns, it outperforms bank deposits. Your average cost per share will be lower than the final market price. For example, investing 36,000 THB with an average cost of 9.67 THB per share, even if the last price is 15 THB, results in a better position than buying all at once at 15 THB.

4. Suitable for Those Without Time to Track Stock Prices

You don’t need to sit in front of screens all day watching news or making trading decisions. The system automates your investments, allowing you to focus on work or other business matters.

Limitations and Risks to Be Aware Of

1. Average Cost Is Not Always the Absolute Lowest

When you invest periodically over time, your average cost will be somewhere in the middle. It might be lower than the year-end closing price but not the absolute lowest. If you pick stocks with no future prospects, risks remain.

2. Cannot Completely Avoid Market Volatility

If the overall stock market faces problems, your portfolio will be affected accordingly. DCA helps you buy at different prices but cannot eliminate market risk entirely.

3. Patience and Consistency Are Essential

If you stop investing midway or panic when prices fall, you won’t fully benefit. DCA requires ongoing commitment for at least 5-10 years or more.

Which Stocks Are Suitable for DCA: Essential Criteria

Before starting to invest, you need to understand the qualities of the stocks you choose. Not all stocks are suitable for long-term investment:

The company must have a competitive advantage: Beware of companies that operate in a declining industry. A good company should have something that sets it apart—be it technology, brand, or network.

The business must have continuous growth: Choose stocks in industries that are still growing or are key players in their sectors, such as electric vehicles, healthcare, or renewable energy.

Profits must be real and consistent: Good companies show increasing profits year after year, not just one-off gains. This indicates strong management.

Debt levels should be reasonable: Excessive debt is a warning sign. If a company pays high interest or faces liquidity issues, risks increase.

Accumulated profits should be rising: Look at retained earnings, not just annual profits. Companies that reinvest their earnings are a good sign.

Clear Example: How DCA Works

Imagine you decide to invest 3,000 THB each month for 12 months, regardless of stock prices. The prices change as shown below:

Interestingly, you spent 36,000 THB but your average cost per share is only 9.67 THB, much lower than the year-end closing price of 15 THB.

If you had bought all shares at 15 THB with 36,000 THB, you would get only 2,400 shares. Using DCA, you get about 3,940 shares—almost 65% more.

Which Brokers Offer Good DCA Services?

Currently, many banks and brokers offer this service, with differences in minimum investment, policies, and fees:

SCBS: Starting at 2,000 THB, invests in SET100, TDEX, fee 0.157-0.257%

SBI: Starting at 1,000 THB, invests only in SET100, fee 0.075%

Phillip: Starting at 1,000 THB, selects from 30 recommended stocks, fee 0.257%

KS: Starting at 5,000 THB, invests in SET100 or ETFs, fee 0.157-0.207%

Nomura: Starting at 1,000 THB, invests in SETHD and major stocks, fee 0.15-0.25%

KTBS: Starting at 1,000 THB, invests in SET, MAI, fee 0.25%

Bualuang: Starting at 5,000 THB, invests in ETFs and indices, fee 0.30%

Maybank Kim Eng: Starting at 5,000 THB, invests in SET50, SET100, fee 0.15%

KSS: Starting at 2,000 THB, invests in SET100, fee 0.15%

6 Excellent Stocks for DCA Beginners

PTT - National Energy

Thailand’s energy giant with business spanning exploration, production, refining, and distribution. Stable dividend payer annually, ideal for supplementary income.

CPALL - Convenience Store Leader

Operates over 13,000 7-Eleven stores nationwide. Steady income from rentals, efficient management, consistent dividends, and strong corporate structure.

SCC - Siam Cement Group

Over 100 years in construction materials. Highly stable, diversified business—from cement and chemicals to packaging—aligned with market trends.

INTUCH - Telecom & Tech

Invests in telecom, IT, digital sectors. Major shareholder in AIS, a leading service provider. Regular cash flow from subsidiaries, generous dividends.

BBL - Bangkok Bank

A major bank with extensive network and diverse customer base. Highly stable, pays regular dividends, and serves as a savings account for Thai families.

CPN - Central Pattana

Develops and manages over 30 large shopping centers nationwide. Special real estate with ongoing expansion plans, steady rental income.

How to Grow Your DCA Savings with Modern Tools

For those ready to advance, modern trading tools like CFD (Contract for Difference) enable profit-making in both bullish and bearish markets.

CFD is a derivative instrument that can be traded 24/7, on trading days and holidays, with low capital. You can analyze stocks and open long positions if you expect prices to rise, or short positions if you expect declines, using leverage to amplify returns.

For example, a 2% price change with leverage can yield a 50% profit or loss. It’s a powerful tool for experienced traders but comes with high risk.

Summary: DCA Is a Path for the Patient

DCA investing doesn’t make you rich overnight but is a reliable path for those willing to accumulate wealth gradually, based on discipline and consistency.

You just need to:

• Choose fundamentally strong stocks with bright futures
• Invest regularly regardless of price fluctuations
• Be patient and let time turn small investments into substantial assets

In 10-20 years, the stocks and accumulated costs you build will become an intellectual capital that grants financial independence. That’s why DCA is a smart choice for millions of people.