Stock Cost Averaging: An Easy and Effective Way to Accumulate Wealth

Current savings trends are no longer limited to bank deposits. Many investors choose DCA (Dollar-Cost-Averaging) because it is a strategy that builds disciplined saving habits and provides satisfactory long-term returns without the need for deep market timing understanding.

Why choose DCA? Reasons investors turn to this strategy

If you are a salaried person, thinking that you need a large sum of money to start investing is a misconception. DCA helps you begin with just 1,000-5,000 THB per month. Afterwards, the system will automatically deduct the amount every month. No worries, no need to think about it—just let your savings work for you.

What makes DCA (Average Cost Method) different from traditional investing is:

• At high stock prices, you buy only a few shares
• At low stock prices, you buy more shares
• The result is an average cost that is lower than buying all at once

Clear advantages of targeted savings contributions

1. Small capital can start

No need for a large lump sum. Just allocate a small portion from your monthly salary. Those with regular income are most suitable for this strategy.

2. Reduce worries, don’t worry about prices

One common concern for new investors is “Will the price go up or down?” With DCA, you don’t need to worry because consistent investing will take care of this.

3. Higher returns than bank deposits

Current fixed deposit interest rates are very low. DCA offers a chance to profit from stock growth. Additionally, many stocks pay regular dividends.

4. Build an investing habit

For beginners, DCA is a first lesson that helps you get to know the stock market before investing heavily on your own.

Limitations of regular contributions

1. Average cost is not the lowest price

If the market continues to rise, your average cost may be higher than the lowest price ever.

2. Wrong stock selection = potential loss

Choosing stocks with no future prospects and declining prices means DCA cannot help you.

3. Not suitable for market timers

If you are a speculator seeking quick returns, DCA is not your choice.

How to select DCA stocks correctly

Choosing DCA stocks is not complicated. Look for stocks with these characteristics:

Business must be a leader — Beware of “Disrupt” that could replace it.

Continuous growth — In future trends such as electric vehicles, healthcare services.

Consistent profits — Reflects good management capability.

Reasonable debt levels — Excessive debt is a dangerous indicator.

Accumulated profit growth — Shows the company can sustain performance.

Good cost control — Efficient management.

Clear example: Investing 3,000 THB per month for 12 months

If you buy all at once at a price of 15 THB with 36,000 THB, you get only 2,400 shares.

Using DCA, you get 3,940.69 shares with the same amount of money—reducing the average cost to 9.67 THB per share.

Brokerages offering DCA services with comparison

( The best broker for beginners

SBI Thai Online — Lowest commission )0.075%### and low starting capital (1,000 THB). Recommended to focus only on SET100, which is suitable enough.

Phillip Securities — Offers 36 analyst-recommended stocks, with 3 trading days per month (5, 20, 28), and a low starting capital of 1,000 THB.

6 recommended DCA stocks to know

( 1. PTT — National Energy

A fully integrated business from exploration, production, refining, to distribution. High stability, consistent dividends, ideal for beginners.

) 2. CPALL — Retail giant

Over 13,000 7-Eleven stores across Thailand, continuous growth, good dividends, suitable for long-term savings.

3. SCC — 100-year cement giant

Business in construction, chemicals, packaging. With Thai and ASEAN regional presence, adaptable to new technologies.

4. INTUCH — Gateway to telecommunications

Major shareholder in AIS, a leading mobile operator. Invests in satellite and tech, high dividends.

5. BBL — Reliable bank

Wide network, diverse customer base, high stability, consistent dividends, suitable for long-term investment.

6. CPN — Shopping centers and real estate

30 properties with stable rental income, good at adapting to consumer behavior, a safe choice for DCA.

CFD: Another option for those wanting to save in stocks

Besides DCA (Average Cost Method) on the actual stock market, there is a more flexible method: trading CFD ###Contract for Difference###.

CFD is a derivative instrument that allows you to trade stocks 24/7 and can:

• Trade Long (up) or Short (down)
• Use leverage (to amplify returns)
• Require less initial capital

Example: Trading Apple (APPL) at $136.63

• Going Long (at $136.63) → closing at $140.00 = profit of $33.70 (50% ROI with only $68.32)
• Going Short (at $136.63) → closing at $133.00 = profit of $36.30 as well

CFD suits those seeking flexibility but involves higher risk than DCA.

Summary advice: If you are a salaried person, feeling cold about starting, want to save money, and let it work, DCA is your first choice. Pick from the 6 stocks above. If you prefer flexible trading and can accept higher risk, CFD might be a useful supplementary tool.