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Averaging is one strategy designed to reduce the impact of security price fluctuations. You may make periodic purchases (dollar cost averaging) or buy additional shares
Averaging is one strategy designed to reduce the impact of security price fluctuations. You may make periodic purchases (dollar cost averaging) or buy additional shares after the price has declined (averaging down). Such strategies may reduce the average cost of the stock in the position and generate larger returns. But to earn the higher returns, the price of the stock must rise, and such price increases are not assured.
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