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Kosta Ouzas proposes reverse dollar-cost averaging: instead of buying on a schedule, add to positions only when prices fall. Each purchase at a lower price reduces your average cost and gives you more room to recover when the market rebounds.
Kosta Ouzas proposes reverse dollar-cost averaging: instead of buying on a schedule, add to positions only when prices fall. Each purchase at a lower price reduces your average cost and gives you more room to recover when the market rebounds.
How do you flip this around and make DCA actually work for you? Well, what you do is you reverse the logic. Instead of buying simply because time has passed, you only add when price moves against you. Time doesn't matter. Each additional buy happens lower than the last, pulling your average cost down instead of pushing it up. Weakness stops being something you fear and becomes something that you can actually plan for. You're not trying to catch the bottom, you're just making sure that every move gives you more room to recover and a cleaner path to exit when the strength returns. Not only when the market makes a new all-time Bye!
