May 28, 2008

Commodity trading software - 15. This was, of course, a time of rising values, but the result”except for the total worth of the holding”would have been the same had prices descended steadily.

As far as the price and price-per-share averages are concerned, the sequence of items is unimportant; the arithmetic works either way. Since, in this century, the long-term trend of market prices”and, hence, values”has been up, the Dollar Cost Averaging formula can work for the investor with the courage and the resources to maintain his consistent pattern of investment. The squeeze on good intentions comes”and must be guarded against”in a period of decline, when the increasing number of shares obtained hardly seems to compensate for the shrinking value of the total investment. If you are afraid that your stock has finally shown its true colors, that in time of stress it has proved to be a dog, you will be tempted not only to stop investing in it, but to sell out and take your loss. Be of stout heart.


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