They were saying how it is not good for buy-and-hold investors, but it is good if you are dollar-cost-averaging. The funny thing is this term is totally misunderstood in context, history and is really used by rookies. You will never see a hedge-fund manager using this term, nor some ultra-high level investor. Precisely I have dollar cost averaging forex trading blog asked a very important question about capitalization: if a person has a system which is very likely going to be long term profitable, how can that person add capital to his or her trading account.
On averagig next few paragraphs I will try to explain my views about increasing trading capital on forex investment accounts and how I believe this should be done in order to maximize profitability and reduce the likehood of investing in a strategy which is bound not to continue working.So what do I mean by adding capital. The investor purchases more shares when prices are low and fewer shares when prices are high.
This system is very simple but requires the ability to open 20 equal positions. I saw a video in youtube saying that dollar cost averaging can be used in Forex trading. It seems to make sense but I want to make sure. What do you guys averaginv about this. Thanks in advance.