Two different approaches and the question of which way is better? Both methods are good because you invest, and now which one is better for you, in this short text, we’ll try to present all the advantages and disadvantages. It is very important to set goals and a plan, as we have mentioned several times before.How much are you willing to risk and for what period of time?

One-time investment is when you accumulate certain funds, receive certain funds, or sell a car, house, apartment, or receive a bonus and then buy a certain investment all at once. There is always a risk that you entered the market at the wrong moment. Do not buy anything at the all-time high (ATH) because everyone is in profit compared to you.

The advantages are higher possible returns, the entire amount immediately brings profit, no transfer costs, commissions, and the like. There is not as much need to monitor and analyze, but simply wait according to the plan.

The disadvantages are certainly higher risk and the possibility of market decline. If you have made a good plan and chosen a good investment, that investment will surely pay off in the future, but if you immediately enter into a loss of 10 or 20% after the purchase, it is not easy to watch and wait for recovery. If you are not an experienced and disciplined investor, there may be problems.

Monthly continuous investment is a strategy that reduces risk, in which you purchase shares over a certain period, averaging your purchased shares.

The advantages of this type of investment are that you reduce exposure to market fluctuations. You can adjust the amount, more in one month, less in another, depending on the market situation. You work on your own discipline and avoid impulsive decisions, which are usually wrong.

The disadvantages are that if the market continuously rises, then the average price may be higher than with a one-time investment. There are additional costs of various fees, and in the case of market uncertainty, you may abandon your plan, which ultimately will not be good for you.

When we sum it all up, both one-time and continuous monthly investment are good, now depending on what kind of investor you are, experienced or beginner, and what your plan is, it depends on which type of investment is better for you and suits you more.

If you’re in doubt, feel free to contact us for help with your decision.