The "Perfect" Market Timing Trap
You’ve heard “buy the dip” a thousand times…
But when the dip actually shows up, you naturally start thinking:
"What if it drops lower?”
“Is this really the bottom?”
“Is it smarter to just wait a little longer?”
That’s the "perfect timing" trap many investors fall into.
When the market is falling and fear is high, the future feels uncertain so many freeze up.
But the truth: The best investors don’t wait for perfect timing or clarity.
They build a system that works even when the future feels foggy.
Getting In The Ownership Game > Playing The Prediction Game
The stock market isn’t about predicting the bottom. That's a losing game.
It’s about not missing the stock market sales whenever they show up.
The good news is you don’t need to predict the exact bottom to benefit from market sales.
Everyone wants to buy at the lowest price possible but the market bottom is only obvious in hindsight, never in real-time.
So naturally, timing the market perfectly requires you to be right twice:
First when to sell. And second, when to buy back in.
Good luck doing that consistently.
Why Do People Say Time In The Market > Timing The Market?
There’s a lot of “market wisdom” floating around on social media.
At first, it might sound too basic. Or like it doesn’t apply to you.
Everyone thinks they’re the exception when they start. But the market has a way of humbling all of us.
People have been falling into the same traps in the stock market for hundreds of years.
Running away from the market dips. Waiting too long to invest. Thinking this time they’ll time it perfectly.
But stock market history tell the real story:
📉 If you missed just the 10 best days in the market over the last 20 years, your total return would be cut in half.
📉 Miss the 30 best days? You would’ve done worse than sitting in a simple savings account.
And here’s the part most people overlook:
The BEST days usually show up right after the worst ones.
When fear and uncertainty is still at its highest.
That’s why timing doesn’t build wealth. Time invested IN the market does.
I remember back in 2020 people thought I was crazy for continuing to buy during the crash...
The stock market fell 34% in just a few months and the “smart” thing to do was to sell your stocks and wait for clarity (sound familiar?)
Many of those people stayed on the sidelines and missed the ~67% rebound that year entirely.
That’s the danger of trying to time it...
It works if you can predict the future but most people aren't fortune tellers.
Here's another recent example:
In the beginning of April the stock market had it's worst 2-day drop since 2020.
But then a few days later, the market jumped +9.52% and had it's 3rd biggest single day gain since World War 2.
If you were sitting on the sidelines waiting for things to “settle down” you missed that moment.
That doesn’t mean the market can’t dip further... It just proves how hard it is to time it right even once.
Even the people on Wall Street who dedicate their career towards investing and have all of the best data and tools struggle to outperform or predict the market.
The solution: Dollar Cost Averaging
Dollar Cost Averaging means making investing a habit by putting a set amount of money into the same investment regularly like every paycheck, every month, or every week.
This strategy:
Eliminates the pressure to time the market
Reduces emotional decision making when fear or greed is running high
And lowers your average purchase price by buying more when the market is dipping (like right now)
You can think of Dollar Cost Averaging like filling up your gas tank.
One week it might cost you $50.
Then let's say the next week gas prices drop and it only costs $42.
Over those two weeks, your average cost to fill up was $46.
That’s how Dollar Cost Averaging works in a nutshell.
You’re buying at different prices over time which helps smooth out the price movements while keeping you in the game.
DCA Example: Investing $400 per month
Let’s say you invest $400 into the same stock or ETF every month:
One month, the price is $800/share → you get 0.5 shares
The next month, it drops 50% to $400/share → now you get 1 full share
Same $400 but during dips you get more shares for your money.
That’s how DCA turns market selloffs into automatic discount shopping.
DCA Example: Wanting to deploy $30k into the market
Let’s say you’ve saved up $30,000 and want to start investing but you’re stuck trying to find the perfect entry point.
By now, we know predicting the “perfect time” is more or less a guessing game.
Instead, you could spread that cash out.
For example:
$2.5k per week over the next 3 months
Or $1.25k per week over the next 6 months
If the market keeps dipping, you benefit from lower prices and keep stacking more.
If it rises, your earlier buys go up while you continue adding.
Either way you’re making progress and you stay in the game as a long-term investor.
DCA Example: The Inconsistent Investor
Let’s say you’ve been meaning to invest but every time the market drops, you tell yourself “I’ll wait a little longer for a better moment”
And when it bounces? You tell yourself “I missed it. I’ll wait for the next dip.”
So nothing happens. You stay stuck watching others get richer.
Dollar Cost Averaging breaks that cycle.
It creates a plan to take your emotions out of your investing decisions and keeps you consistent with investing. That’s how real wealth is built.
Why DCA Works (Recap):
You buy more shares when prices drop
You avoid emotional “should I buy now?” decision loops
You avoid reaction investing decisions triggered by headlines
You take action without needing to play the prediction game
Some Common DCA Questions I get:
"What if I need this money soon? Will DCA work?"
DCA works best when you’re investing long-term money, such as cash you won’t need for at least 5+ years. If you’re saving for something short-term (like a house or emergency fund) that money would be better in a high-yield savings account or CD.
“Can I DCA into multiple ETFs?”
Yes, but don’t overcomplicate it. Most people are already diversified with just a few solid funds like VOO or QQQM. If you want to add another ETF, make sure it plays a different role in your portfolio (like growth vs dividend focus). I cover more options in my Money Mastery program.
“Do I have to DCA forever?”
Nope. You can always adjust your strategy as your goals, income, or risk comfort level changes. The point is to start building the habit of investing now. You can always fine-tune it later.
It's not about trying to be a perfect investor. It's about having a system that keeps you in the game even when life (or the market) gets choppy.
How to Set Up Dollar Cost Averaging (DCA) in 3 Steps
The best investing decision I ever made was making it a habit.
Setting up automatic buys every time money hits my bank account.
The game changed when I made buying ownership non-negotiable.
Setting up DCA is easier than you think. Most brokerages let you automate it in a few taps or clicks.
Here’s how to do it:
Robinhood
Robinhood calls it “Recurring Investments.”
Tap the search bar and find the ETF or stock you want (such as VOO, QQQM, or SCHD)
Hit “Trade” → "Buy" → Then tap "Shares" in the top right corner and then Select “Recurring Investment”
Choose how much you want to invest and how often (weekly, biweekly, monthly)
Confirm the schedule and you’re good to go
Robinhood will automatically pull the money and invest it for you without you having to do a thing.
Fidelity
Fidelity lets you automate recurring investments inside your account too.
Log in and go to your “Accounts & Trade” section
Find the fund you want to invest in (like FXAIX or another fund)
Click “Buy” then tap "Buy Recurring"
Choose your dollar amount, schedule (monthly, biweekly), and funding account
Quick tip: Use your paycheck date or a consistent day each month to make it line up with the money you have in your account.
Vanguard
Vanguard is a bit old school but still lets you automate investments. Here's how to automate ETFs:
Log in and click “Automatic Investments.”
Set up 2 steps:
→ Auto-transfer from your bank to your Vanguard account
→ Auto-invest into your ETF (like VOO)
Schedule your ETF buy 2+ days after your transfer to avoid settlement issues
You can invest as little as $1 with fractional shares!
Final Thoughts: The Power of Long-Term Investing
The real winners in the stock market are the long-term players.
They're just not as noisy as the short-term ones.
Think about this: Even if you had the worst timing ever and bought at the top of the stock market right before the COVID crash in 2020, you'd still be sitting on a profit right now, despite this current market pullback.
And that’s not even counting if you kept Dollar Cost Averaging during that crash.
If you did, your average cost would’ve dropped and you’d be up even more today.
The lesson? The real game is playing the asset ownership game.
Just like in Monopoly, the people who win are the ones who own the most valuable spaces on the board.
The richest people in the world aren’t playing the prediction game and day trading.
They're focused on buying quality assets consistently over time.
When the market dips, they simply see it as an opportunity to buy more. Not a reason to runaway and panic.
You don’t need to predict the bottom or become a Wall Street expert.
You just need a repeatable system and the courage to keep stacking when everyone else is second-guessing.
Whether it’s $50 or $500, set your plan and let time + consistency make you richer.
Want help setting up your own DCA plan? My Money Mastery program walks you through how to build your personal investing system step by step.
Opportunity doesn’t wait for perfect timing. Move or stay stuck on the sidelines. Your call.
