Many people practice Dollar Cost Averaging (DCA) down, but do people practice averaging up?
To begin, DCA up is a practice to purchase share at a higher price than you already bought in order to achieve a larger position in your portfolio. Averaging up is a more sensitive issue which many people did not advocate because people simply doesn't like to pay for things which are higher than the price they bought earlier. Instead they want to wait till the time when the stock price goes below their buying price and in the face of doing so, they could be waiting for a possibly indefinite period of time, especially if the price they bought the stock was during recession period. So when is a good time you should enter again?
The answer could lie in whether you perceive the stock as undervalued or overvalued at the time when you are thinking of averaging up. If ......