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TopicStock Topic 35
Zachnorn
01/27/22 5:53:59 PM
#273:


red sox 777 posted...
Isn't dollar cost averaging the same as buy the dip?
"Buying the dip" is trying to time the market to buy at a low. "Dollar cost averaging" is buying at regular intervals regardless of market conditions.

Easily confused with "averaging down" which is buying the dip to get a lower cost per share. Dollar cost averaging only lowers the cost per share when the stock is down but it can increase it if the value of the stock has gone up.

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