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Financial family plan is a continuous planning. It takes discipline and strong motivation to achieve desired goals. With the limited income that is received each month, it is highly suggested for the family to begin setting a side the funds for financial purposes as early as possible. Placement and allocation of the funds are carried out regularly every month according to the family financial capability. This investment pattern is usually called as Dollar Cost Averaging (DCA).

Here are the following DCA illustrations for placement of funds in the stock market. The concept of DCA has something to do with diversification. The investors in the stock market are diverging by not only put their money at one stock only, but pass it through at many stocks in various sectors. The idea is: if one sector is depressed, then other sectors may be compensated. This kind of diversification is already common and well known to many people.

The problem is, what if all sectors-or in other words, the stock market at a certain time suddenly being depressed? In this situation, that diversification can not do much. One way that is proven can avoid loss is do not invest in stocks. Indeed, by not investing in the stock market means not suffer losses, but you would not get benefits also when the market is rise.

Other more profitable strategy is if you know exactly when the market is going up and when the market is going down (already described). For that you need to have supernatural power like a psychic or have a friend who has a supernatural ability to see the future. But, if you possess this supernatural ability, why waste your time on stock market.

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