Titan Path #20 - Income Investing Without Predicting
Good Evening Titans!
The reason that Dollar Cost Averaging (DCA) works so well is that it doesn't try to time anything; it doesn't predict anything. My big take away from DCA is that if I spread out my activities then I don't need to worry about timing or predicting.
I'm using timing and predicting interchangeably. If I'm able to time the market then I'm able to predict something.
I like to invest for income by selling options so DCA doesn't directly apply, however, I can borrow from it by spreading out my options sales. Thus, I use the term "Scaling" to talk about adding up to a full position over several trades executed at different times.
For example, If I can sell 4 put options that each roughly expire in a month, then I'd like to sell one per week for 4 weeks.
But it is hard to visualize this and see its effect. So to try to highlight the effect of scaling, the power... I've launched a challenge for myself to sell 1 put option on Robinhood (HOOD) every single day.
Watch the first week recap!