Part 3/7:
The Dollar Cost Averaging Strategy
A strategic approach favored by many investors is dollar-cost averaging (DCA). This method involves consistently investing in the stock over time, regardless of price fluctuations. The strategy becomes particularly advantageous when the stock price drops significantly.
For instance, Palantir recently crossed the $64 mark, dropping $16 from its year-high of $80. This drop places it into a "Double Down" zone for investors following DCA principles. While cautious not to overly leverage themselves financially, investors are encouraged to increase the rate of their DCA during dips, capitalizing on the lower-priced shares rather than panicking.