Normal
There are trend followers who buy dips - retracements in an overall uptrend. I'm not one of them, but this seems to be not unreasonable, and could be (mis)described as dollar cost averaging.Dollar cost averaging falls down when you are buying something all the way down to zero, when the trend is against you.As always, it's actually the money and risk management that protects you - admitting at some point that you are wrong and keeping your loss manageable.
There are trend followers who buy dips - retracements in an overall uptrend. I'm not one of them, but this seems to be not unreasonable, and could be (mis)described as dollar cost averaging.
Dollar cost averaging falls down when you are buying something all the way down to zero, when the trend is against you.
As always, it's actually the money and risk management that protects you - admitting at some point that you are wrong and keeping your loss manageable.
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