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<p>[QUOTE=&quot;medoraman, post: 1154872, member: 26302&quot;]Yes, it will have a bad outcome if you buy at higher all along then at the end the price falls. What other technique will overcome a price fall at the end? Lets say a &quot;normal&quot; market, price starts at 10, goes up 1 a year, and then at year 10 falls to 5. Buy and hold would buy at 10 and sell at 5. DCA would buy at 15 and sell at 5. The only adjustment would be the TVM that you lost on the 5 years average value on the buy and hold technique versus DCA. Yeah, you are right, but both are losers. Why would you buy and hold or DCA into a market you suspect a collapse? You wouldn&#039;t, so neither methods protected you. </p><p><br /></p><p>YES, if you KNOW a market will go up, invest as much as you can right now. If you KNOW it will go down sell everything. Problem is, most of us don&#039;t know, and we don&#039;t know if today&#039;s price is good, or tomorrow&#039;s will be better. Also, the large majority of investors have the horrible habit of selling when markets fall out of fear, and investing when markets are near their peak. Most of the investors who lose in a market fall are small investors. DCA forces these investors to not give in to their bad habits, and forces them to buy on dip and not overbuy on highs like they want to.</p><p><br /></p><p>Lets just say silver falls to $20. You and I will not be hurt Cloud because we both bought and held at low prices, ($4 myself). Those who will be hurt will be the small investors who bought at $30 and $40. If a small investor simply put in a small amount each month for the next two years, he will buy fewer ounces on high marks, and more ounces in low marks, giving him a more average market price.</p><p><br /></p><p>We can disagree man, I know you are as stubborn as me. THis was just posted for others to consider. I have read analysis that shows investing $XX a month versus buying XX units a month lowers your average purchase price, and have replicated this myself.[/QUOTE]</p><p><br /></p>

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