aminorex
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December 04, 2014, 04:44:05 PM

"Dollar averaging" is not a rational thing to do, it is only a psychological pacifier, right?

If one bought 100 coins at 800$, buying 100 more at 400$ does not compensate or alleviate the loss of the first buy.  It only mixes a vexing mistake with a minor mistake to make a double dose of a medium-strength mistake.  The loss from the first buy is still there.  Right?

You are doing it wrong.  Dollar cost averaging means buying 100 at $800 and 200 at $400.  It will result in a gain on the total investment, with p -> 1.0 as t -> oo, if conducted without fail at a constant rate without slippage on a log-normal distributed series of increments.