DCA-or-Lump-Sum-Strategy, What Strategy Is Effective?

This repository is based on analysis between Dollar cost averaging and lump sum investment strategy.

When it comes to investing, you can either invest an amount referred to as lump sum investing. You can also decide to make a decision to invest a specific amount over a period of days, this strategy is referred to as Dollar Cost Averaging (DCA).

The process i used

The process i used when working on this project is as follows:

1. Create a python script that extracts data related to that stock, the api used was gotten from yfinance.
2. The python script should be given a time range (i used 10 years range), and the data extracted should be saved in either a csv or excel file.
3. With the extracted data (the stock data i used was GOOGL stock), you can begin applying data science on the project.

Here are some images gotten from the analysis:

This is the visualization of the Google stock prices over the past 10 years (2012-2022)

This is a chart based on investing a lump sum of $30k in Google for the past 10 years

This is another chart based on a dollar cost averaging investment strategy in the Google stock

The investment days i used in this projects was 25 days.

This the volatility between Lump Sum and Dollar Cost Averaging Investment

Conclusion

Investing in stocks can be a wise financial decisions, but don't underestimate the importance of investment research.

I do update that python script daily when i want to go through a stock.

The rest of this project analysis can be found on the Jupyter Notebook attached to this repository.

Thanks