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<p>[QUOTE="-jeffB, post: 2422433, member: 27832"]No, because you can't tell when "low" is. (If silver drops 10%, is it about to go back up to its previous level, or is it about to fall 20% further?)</p><p><br /></p><p>If you're interested in accumulating silver (or a stock, or any other asset), DCA means spending a (more or less) constant <i>dollar</i> amount at regular intervals. So, like I said, $200/month (or whatever you can afford). If silver goes down 10%, you get to buy 11% more. If it goes up 20%, you'll buy 17% less. Like [USER=6492]@Rono[/USER] said, with an asset that goes up and down, DCA "optimizes" your spending over time.</p><p><br /></p><p>I've run into people here who are violently opposed to DCA, but so far, the only approach I've seen that's better involves predicting the future. That's what markets are for; you <i>might</i> guess better than the market over time, but more likely you're fooling yourself if you think so.[/QUOTE]</p><p><br /></p>
[QUOTE="-jeffB, post: 2422433, member: 27832"]No, because you can't tell when "low" is. (If silver drops 10%, is it about to go back up to its previous level, or is it about to fall 20% further?) If you're interested in accumulating silver (or a stock, or any other asset), DCA means spending a (more or less) constant [I]dollar[/I] amount at regular intervals. So, like I said, $200/month (or whatever you can afford). If silver goes down 10%, you get to buy 11% more. If it goes up 20%, you'll buy 17% less. Like [USER=6492]@Rono[/USER] said, with an asset that goes up and down, DCA "optimizes" your spending over time. I've run into people here who are violently opposed to DCA, but so far, the only approach I've seen that's better involves predicting the future. That's what markets are for; you [I]might[/I] guess better than the market over time, but more likely you're fooling yourself if you think so.[/QUOTE]
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