Thank you @wrashi I enjoyed your explanation.
I think I will stick to Dollar Cost Averaging for now since it takes less discipline and I don't have any excess cash to invest more if prices drop.
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Thank you @wrashi I enjoyed your explanation.
I think I will stick to Dollar Cost Averaging for now since it takes less discipline and I don't have any excess cash to invest more if prices drop.
Thanks, @chrisrice! It sounds like Value Averaging isn't quite where you're at right now.
Two of the ways Value Averaging grows your cash pool is by buying less when prices are up leaves more in the pool, and selling when prices are up significantly. In a rising market you can pretty quickly have a good amount of cash. At that point, I usually consider increasing my target amount.