Page 82 - Intelligent Investing (3)
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Dollar Cost Averaging
Let’s say you buy 100 shares of AT&T at $30 and you consistently buy more
shares on down days (red) such as 100 shares at $28.8 and 100 shares at $28.3
The point is to use the tools you’ve learned such as the RSI and recent market
activity to buy when you can get a relatively low price and over time lower your
average buying price
This strategy works best when used on a consistent basis( weekly, monthly,
quarterly) regardless of market conditions ( Bull or Bear)
Employer retirement accounts use this strategy
