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> you're equally likely to be investing at a local minimum. If you invest at a few different times, whether fixed interval or random, is this not increasing th
by Nursie 4y ago
> you're equally likely to be investing at a local minimum.
If you invest at a few different times, whether fixed interval or random, is this not increasing the probability of approach an average value over the period you're investing?
I'm not asserting it's a good idea, I'm not using it as a strategy myself (or in fact making investment choices myself at all really), I'm just interested from the technical perspective.
- DelaneyM 4y ago> If you invest at a few different times, whether fixed interval or random, is this not increasing the probability of approach an average value over the period you're investing? It does indeed increase the probability that you will approach the average value over that period. But there's no reason to believe that average will be lower than the current value.
- Nursie 4y ago> But there's no reason to believe that average will be lower than the current value. 100%, not disagreeing. But it does reduce the risk that you're buying at an outlier price.