DCA Dollar-Cost Averaging: A Stock Investment Strategy for Beginners Looking to Build Long-Term Wealth

Understanding Dollar-Cost Averaging (DCA) Investment Before Getting Started

Discipline in investing is one of the key factors in building wealth, especially for salaried individuals with regular income. DCA or Dollar-Cost Averaging is a popular method that helps beginners enter the investment world with confidence.

The concept of DCA is simple: every month, you deposit the same amount of money to buy stocks or funds of your choice, regardless of the price. This approach allows you to buy more or less depending on market volatility, rather than trying to time the lowest prices, which can be difficult to predict accurately.

Advantages of DCA Stock Savings You Should Know

No need for a large capital: The DCA system accepts starting investments of just 1,000-5,000 THB per month, depending on your broker. You can begin with leftover cash after paying your regular expenses.

Reduces risk of poor timing: When stock prices fall, consistent transfers enable you to buy more shares with the same amount of money. When prices rise, you buy fewer shares. The result is an average cost that decreases over time.

Suitable for busy people: If you don’t have time to monitor the stock board daily, DCA is a good solution. Simply set up an automatic transfer system, and let time and business growth work for you.

Builds saving discipline: DCA forces you to invest continuously, regardless of market conditions, helping you develop good saving habits.

Limitations to Be Aware Of

Although DCA has many advantages, it’s not a perfect method. If you choose stocks without growth prospects or businesses that are ending, even DCA investments can result in losses.

Additionally, DCA performs best when investing in fundamentally strong stocks with long-term growth potential. If you gamble on stocks, the average cost may not be as helpful.

Numerical Example: See the Practical Results of DCA

Suppose you invest 3,000 THB per month for 12 months, during which stock prices fluctuate between 6 and 15 THB per share.

The result is you acquire about 3,940 shares with a total investment of 36,000 THB. The average cost is 9.67 THB per share, even though the year-end closing price is 15 THB per share.

Conversely, if you waited to invest the entire 36,000 THB at once when the price was 15 THB at the end of the year, you would only get 2,400 shares—less than 40% compared to the DCA method.

Which stocks are suitable for DCA?

Not all stocks are suitable for DCA. Look for companies with the following qualities:

Strong business fundamentals: The company should have differentiators from competitors, such as a well-known brand, advanced technology systems, or efficient distribution networks.

Consistent and growing profits: A good company should show stable or increasing profits, indicating healthy financials.

Reasonable debt levels: Companies with excessive debt may face problems during economic downturns, rising interest rates, or reduced cash flow.

Dividend payments: If the company distributes profits to shareholders as cash dividends, it’s a good sign of confidence in its income stability.

Where to find DCA services? Compare options

Many brokers in Thailand offer DCA services with different conditions:

Most focus on SET 100: a group of the top 100 large, liquid stocks.

Minimum investment starting from 1,000 THB: up to 5,000 THB, depending on the broker.

Investment frequency: some offer weekly, others monthly investments.

Fees: vary from 0.075% to 0.30% of the trading value.

Choosing the right broker depends on how much you want to invest, which stocks you prefer, and your available budget.

6 Stocks Worth Considering for Beginners

PTT ( – National energy company with a stable business base, from oil and natural gas exploration to distribution. Consistent dividends.

CPALL ) – Operator of over 13,000 7-Eleven stores, a continuous revenue-generating retail business.

SCC ( – Cement and chemicals company with over 100 years of history, stable business.

INTUCH ) – Shareholder of major telecom company AIS, with long-term contracts generating cash flow and high dividends.

BBL ( – Bangkok Bank, a leading commercial bank with branches nationwide and abroad.

CPN ) – Central Pattana, a shopping mall developer with plans to expand office and residential buildings, offering stable income.

Tips for Choosing Stocks for DCA

Regardless of the stock, consider whether the company has the ability to grow continuously. Key indicators to check include:

• Profitability (Profitability)
• Appropriate debt-to-equity ratio (Debt-to-Equity Ratio)
• Revenue growth rate (Revenue Growth)
• Dividend policy (Dividend Policy)

Summary: When is DCA a Good Choice?

DCA is not a method to get rich quickly but a strategy to build wealth gradually without worrying about market timing.

Suitable for:

• Working individuals with regular income who want to save money
• Those without time or desire to monitor stocks
• Beginner investors aiming to establish a solid investment foundation

If you belong to any of these groups, DCA services from various brokers can be a helpful tool in building your portfolio.