I decided to do a little research on this matter today. Up front it seems to make sense and if is what I do but mainly because I have only a limited amount of funds to purchase enough stocks at one time..
You are better off purchasing as much of a stock at one time and then keeping it since usually stock goes up.
Below are link to information about cost averaging in stocks.
Does Dollar Cost Averaging Work?
Dollar Cost Averaging Stock Strategy. InvestorGuide.com. WebFinance, Inc. http://www.investorguide.com/igu-article-967-stock-strategies-dollar-cost-averaging-stock-strategy.html (accessed: October 15, 2008).
Dollar Cost Averaging, http://www.efmoody.com/planning/dollarcost.html
How to Time Your Buys,
http://www.fool.com/personal-finance/general/2007/04/19/the-price-of-dollar-cost-averaging.aspx
Wednesday, October 15, 2008
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this is relaly cool
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