When it comes to finances the thought processes to when you have no money, when you have enough money and when you have too much money are much different. Not to mention what you do and don’t have access to.
There are many people who come to Vegas in hopes of hitting it big
One example I gave a friend was how she knows it’s best to dollar cost average but she tries different techniques anyway. The analogy I used was about blackjack. Using basic strategy and playing this perfectly every time the house edge (ie- the casino’s advantage) is between .5-.9% whereas the actual numbers also must take into account other factors like how much do they pay out on blackjack, if the dealer hits on a soft 16 etc. But all of that aside, assuming that a player does not play using perfect, basic strategy their odds can go down… significantly in some cases. This is what casinos hope for as it helps them net a greater profit.
Finance is much like this as well. Trying to outguess the market will not help especially if you don’t have insider information (which ends up being illegal, of course). Dollar Cost Averaging is a way to consistently enter the market without being fully committed and not worrying about market timing. The one caveat of DCA is that you must have the time (in your lifetime) to benefit from it to a point where you can exit and capialize on the benefits.