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Strategies & Market Trends : The Art of Investing
PICK 56.19-1.5%Jan 16 4:00 PM EST

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ajtj99
To: Sun Tzu who wrote (3976)5/3/2022 11:04:58 PM
From: Jacob Snyder1 Recommendation  Read Replies (1) of 10745
 
If it bottoms at 40, and you still have cash to buy, your method works. But if it bottoms at 100, you end up with a trivial-sized position. That’s why I do simple old-fashioned $-cost averaging. Your method is safer, but misses opportunities. If I have spent the time to study and follow a stock, I want to end up with a meaningful position.

For example: I have a meaningful position in BABA, at prices from 160 to 110. So my method doesn’t always work perfectly….
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