Until recently, my understanding was that "crab investing" is the best strategy for an "everyday investor":
Crab investing: Every pay check, buy (and hold) a diverse range (index fund) of stock, irrespective of if the market was up or down.
Everyday investor: Someone who's day job is not investing, and retirement is 10+ years off
However, the other day, I heard that the "don't catch the falling knife" strategy may be better in the long run:
Don't catch the falling knife strategy: Each paycheck, if the closing price yesterday was higher than the month before then buy. Otherwise put the money in a savings account until the next month. When the next month rolls around, repeat, putting all of the saved money in as well.
On the face of it, it looks like you will miss out on some gains due to short term volatility, but will be making the best of long term market downturns. This sounds good in theory, but:
Does the "don't catch the falling knife strategy" work better in practice than simple "crab investing"?:
Is there an ideal period (weekly, monthly, 2 monthly, etc.) to use?