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<p>[QUOTE=&quot;medoraman, post: 1154713, member: 26302&quot;]I wish you would have saved it Cloud, I would have liked to read it. To me, dollar cost averaging accomplishes two things, both human nature related more than financial:</p><p><br /></p><p>1. It prevents a person from &quot;jumping in&quot; to a hot market, as individuals are known to do. It is proven small investors chase returns, and will always choose a fund that went up last year versus one that went down. They always assume past performance indicates future performance, which is very wrong.</p><p><br /></p><p>2. It makes them buy when psychologically they don&#039;t want to. The best time to buy anything is when everyone else is wanting to sell. Everyone else, (friends, media, etc), has a very strong affect on people, and without the discipline of dollar cost averaging they most likely would not buy on the lows.</p><p><br /></p><p>This is why I recommend dollar cost averaging into a market, if someone is not an advanced financial person. Do I do it? Yes and No, because I believe I have the willpower to defy conventional wisdom that most other investors fall prey to. maybe I am just naive. I do do it for a couple investments though.[/QUOTE]</p><p><br /></p>

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