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Strategies & Market Trends : Playing the QQQQ with Terry and friends. -- Ignore unavailable to you. Want to Upgrade?

To: stock2005 who wrote (3133)	11/7/2005 3:54:02 AM
From: Walkingshadow	Read Replies (1) \| Respond to of 4814

That's a pretty good example of where dollar cost averaging can be a good thing, but a lot of the reason is because the market advanced tremendously during that time. You couldn't have picked a better time. If you had picked other 10 year time periods, you would not have fared nearly as well. I don't know for sure, but I bet if you started dollar cost averaging in 2000 until now, you would probably be about even by now, at best. My guess actually is that you'd still be down, but I'd have to calculate it out. T

To: stock2005 who wrote (3133)	11/7/2005 4:08:41 AM
From: Gush	Read Replies (1) \| Respond to of 4814

Dollar cost averaging is a method used to get the average investor to buy a stock that has significantly gone down so that the brokerage houses can sell their shares to you.. It also prevents the stock from going straight down.. Dollar cost averaging can be seen in lower lows, and lower highs. double and triple tops.. etc..etc.. Just like BOTTOMS.. There is no such thing as a bottom.. only previous support. Dollar cost averaging on CSCO, Worldcom, ENRON, LVLT, and many others will never pay off for many many many people. When a stock like CSCO tanks the way it did it may NEVER returned to those previous highs.. WAY TO MANY SELLERS LOOKING TO BAIL. Good luck to everyone.. I hope CME tanks..