2568 This year, avoid missing out on DCA stocks. Which one is good for beginners just starting to save?

Why are Thais saving money in increments of 1,000-5,000 Baht in stocks

When deposit interest rates are never satisfactory, Thai investors turn to Plan B that earns small daily amounts but good annually, which is buying stocks occasionally. This makes DCA investing a popular term among office workers.

DCA stands for Dollar-Cost Averaging, or literally “average cost purchasing,” which allows salaried individuals to regularly invest in the stock market without fearing timing mistakes.

How does the cost averaging mechanism work

A simple example: Choose stocks → Set monthly investment amount → Automate the system to deduct money → Let time do its work

For example, you set your bank to deduct 3,000 Baht every 15th of the month to buy any stock you choose. Whether that day’s stock price is 8 Baht or 15 Baht, the 3,000 Baht remains the same. The difference between high and low prices helps calculate the “average cost” decreasing over time.

A table proving that monthly stock accumulation outperforms lump-sum investment

Assuming 36,000 Baht invested once vs. monthly accumulation:

If you buy all at the end of the year at 15 Baht, you’d get only 2,400 shares, compared to 1,540 shares with DCA! That’s why accumulation beats timing.

Advantages of this savings method

Very simple - no need to watch the screen 24 hours. Just set auto-debit for a month, problem solved.

Low capital required - 1,000-5,000 Baht per month, anyone can do it, instead of saving 100,000 Baht to buy one stock.

Avoid wrong decisions during downturns - Market crashes often create fear, causing people to sell. DCA forces you to buy when prices are low.

Higher returns than long-term deposit interest - Deposit interest is about 1-2% per year, while stocks have the potential to grow 8-15% per year (in the long term).

Limitations to be aware of

Although good, DCA is not guaranteed to win. If stock prices decline throughout the year, (“dead stocks”) can still incur losses. The average cost helps reduce losses but doesn’t guarantee profit if you pick poorly.

Which stocks are suitable for DCA

Not all stocks are suitable. Stocks to choose should have characteristics:

• Strong business fundamentals - Can last long, not just a temporary trend
• Consistent and steady profits - Reflects a company on a good trajectory, not just a single hit song
• Manageable debt levels - High debt increases repayment risk
• Regular dividends - Indicates stable cash flow
• Growing with current trends - Real estate, electric trains, hospitals are mega-trends

6 recommended stocks for DCA beginners

1. PTT - Energy giant

A national energy company with steady cash flow, paying dividends nearly 2-3 times a year, suitable for those seeking additional income.

2. CPALL - King of retail

7-Eleven with nearly 13,000 branches in Thailand, continuous profits, steady dividends, resilient business during crises.

3. SCC - 100 years of Thai cement

Diversified business: (Cement, Chemicals, Packaging), known for stability, adaptable with technology.

4. INTUCH - Telecom fortress

Major shareholder in AIS, continuous cash flow from members, focus on dividends, unlikely to lose money.

5. BBL - Major bank building confidence

Bangkok Bank, diverse clients, stable financial system, popular among long-term investors.

6. CPN - One of Thailand’s shopping centers

Central Pattana, over 30 malls, continuous rental income, capable of expanding internationally.

Which banks and brokers offer DCA services

Most require a minimum of 1,000-5,000 Baht per month, with fees ranging from 0.075-0.30%.

To accelerate profits: trade stocks with CFDs

For those wanting to turn accumulation into quick profits, they can use CFD (Contract for Difference), a derivative contract that profits from price movements with low capital, such as:

• Opening Long if expecting prices to rise
• Opening Short if expecting prices to fall
• Leverage 20:1 means you can trade with $68 $1,366$136
• Trade 24/5, matching global market hours

Comparison:

• Investing (in real stocks at $136.63 per share → 1 share → $3.37 profit )2%$68
• Trading CFD with leverage, with a capital (on 10 Lots → $33.70 profit )50% when the price changes by $3.37

Be cautious: leverage amplifies gains but also losses equally.

Summary: Who should choose DCA

Investors aiming for long-term dividend income should choose DCA with banks. Those wanting quick trading for higher profits can try CFDs first, then decide based on their profit results and risk appetite.

Which DCA stocks are good in 2025? No single answer, but start by evaluating quality: PTT, CPALL, SCC, INTUCH, BBL, CPN are safe starting points for beginners.