Dollar Cost Averaging is a useful tool. It can help you out of a bad situation. It can help you make a good situation better. It saved me from a bad stock buy.
A few years ago I got caught up in the PLTR IPO hype. It was stupid of me. But I saw post on here about it and decided to test my luck. I got in around $25 a share. Then the stock tanked. When it sunk to $7 a share I decided I might be able to dollar cost my way out of it. So I bought double the amount of shares at the lower price. I commented on this sub that I was buying more at the lower price and was called an idiot. Well it worked out. My average cost for PLTR is now $14 a share. So as of today I am in the profit.
So what will I do? I am going to do my own research now and decide if I should sell or hold. There is thought that PLTR will important with AI. But I know how dangerous hype is.
The moral of the story: Don't make buys based on reddit hype. And if you do DCA can help you out of a jam.
[link] [comments] https://www.reddit.com/r/stocks/comments/13vw1wf/a_reminder_that_dollar_cost_averaging_is_a_legit/
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