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<p>[QUOTE=&quot;beef1020, post: 1751668, member: 24544&quot;]DCA is a great tool to force discipline, but it&#039;s a horrible tool to justify investing more money into an investment just because you already lost money. It should not be used to justify your purchase, again that is the sunk cost fallacy.</p><p>&nbsp;</p><p>The first order of business is to evaluate any investment and determine what price you are happy paying. Once you have done that, and I think people should periodically recheck their decisions, then if the price of the asset is below the value you think it&#039;s worth you should buy it. If it drops further you should be happy to see it drop. DCA helps people fight the urge which Medoraman points out, where people buy their winners and sell their losers. But again, DCA should not be used to justify your purchase, the question is at what price do you think silver is overvalued?</p><p>&nbsp;</p><p>I do not dollar cost average my own investments because the money I save and invest does not come in nice even chucks of money spread out over nice even chunks of time. The nature of my investable money is periodic lunp sums of money. I could dollar cost average that lump sum of money, so I could DCA $10,000 as $1,000 per month for the 10 months following the lump sum. Instead, I invest all $10,000 at once on the belief that it&#039;s just as likely the market will go up and I would miss out as it is likely that the market will go down and DCA would help. Otherwise, I have a target portfolio allocation which I rebalance yearly (which forces me to sell my winners and buy my losers just like DCA would do).[/QUOTE]</p><p><br /></p>

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