LogFAQs > #962132864

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Topic	Stock Topic 35
red sox 777 01/27/22 6:03:13 PM #274:	Zachnorn posted... "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. I am pretty sure dollar cost averaging means only buying when it lowers your average cost. The other one you are referring to is what is typically recommended (just put all your money save an emergency fund in the market at all times). --- September 1, 2003; November 4, 2007; September 2, 2013 Congratulations to DP Oblivion in the Guru Contest! <cite>red sox 777 posted [p:962132864] in Stock Topi... [t:79832223]...</cite> <quote>Zachnorn posted... </cite> <quote>"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.</quote> I am pretty sure dollar cost averaging means only buying when it lowers your average cost. The other one you are referring to is what is typically recommended (just put all your money save an emergency fund in the market at all times). --- September 1, 2003; November 4, 2007; September 2, 2013 Congratulations to DP Oblivion in the Guru Contest!</quote> ... Copied to Clipboard!
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