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Dec 5, 2019 at 16:58 comment added JBentley Apologies, that was a typo. It should read "increases your risk of not buying at the bottom". Yes, you are correct, that for an irrational investor, such advice can be worthwhile.
Dec 5, 2019 at 16:46 comment added wberry Very sensible, except that "buying at the bottom" is what you want. Psychologically though, if the alternative is to delay investing entirely due to fear of "buying at the top", I argue this scheme is certainly preferable.
Dec 5, 2019 at 12:11 comment added JBentley It is debatable whether this technique results in any benefit. Yes, it lowers your risk of buying at the top, but it also increases your risk of buying at the bottom. Meanwhile, in an overall upwards trending market, your money has spent less time being invested than if you did it all in a lump sum at the beginning, leading to an overall loss on average.
Dec 4, 2019 at 20:35 review First posts
Dec 4, 2019 at 21:08
Dec 4, 2019 at 20:34 history answered wberry CC BY-SA 4.0