Investing via direct investment plans turns that notion on its head and proves the opposite can be true. The first necessary asset is discipline.
Many investors are their own worst enemies, lacking a helpful, consistent discipline.
Direct investment plans provide a framework for a successful investing discipline. Direct investing supports all of these activities. The plans are not incredibly easy to sell from, so it is rare that you make a snap decision to dump stock when the market tumbles. I'll buy more shares this month because prices are lower. If you send a check in the mail each month instead, as we do, you merely need to discipline yourself to do so each month.