Part 4/7:
If the stock price declines to $19, consider investing an additional $300.
If the price falls even further to $18, invest the remaining $300.
By using this strategy, your average purchase price drops to around $19 per share instead of being locked in at $20, which can greatly improve your investment outcome.
The Emotional Aspect of DCA
Interestingly, when DCAing, investors may find themselves rooting for further price drops after their initial purchase. Small fluctuations in price may create opportunities for better buy-ins, making the strategy feel more advantageous.