So one had 'chosen' Meta as their stock pick.

After the strong run up, in Sep 2021, one noticed the huge pullback in the stock. From the highs of around 380, the stock pulled back.

One had practiced prudence. Don't chase, don't chase, just don't chase the **** .....

So imagine this one decided to embark on the so-called DCA strategy... and one even modified the strategy and to only buy at the lows.

Imagine la... one had the powers to buy at the lows...

And one decided to add/accumulate more after one decided that 'strong support' can be seen...

1) First bite at the apple, Nov 2021.. 306.
Ooops... that didn't go well at all.

2) Second bite.... patience.. patience... be very patience.... after waiting, one decided to add more in April 2022.

So second bite at 188.
stock still falls....

Never mind, one insists. This is a DCA buying...

3) Stock traded in a 'range' in June to Aug 2022. So the next bite of the apple is made....

So third bite is at 160.
rest is history... the fall continues....
It is now Nov 2022. 3 bites made. 306, 188 and 160. For a total of 654. Or average of 218.

price is now only 93.


Yes, it's all rear view mirror shit.  Easier said when looking at what has happened. However, like history, if one does not study the past, how can one be sure this would never occur again?

See how the continuous average down only dug the hole deeper and deeper?

What now?

Well, one could do further test by suggesting to have another bite of the apple at 95.00. Yes? Another bite, which will bring the average price down to 187.25. (One could come back to this posting and review and see the results come March 2023. Yup. Check the outcome and see if the decision to continue to buy was wise or not)

But what about the review of the stock selection? What if one had err-ed and made a poor stock pick choosing Meta? If the decision was wrong, why not correct the mistake by selling? Where's the sell button? Does it or does it not exist?

Or do you want to continue to add and add and add for another 15 years?

And yes, one could also see the grave danger of adopting an average buying of a stock for x-months or x-years. This is because during the accumulation period, the stock fundamental/economics could worsen (as seen in Meta) and while 'accumulating', the stock could plunge like hell as seen in Meta?

Review of the stock fundamentals is very important.

Learning to sell is very important for the investor too. Selling and thus correcting the investing mistake is much better than say holding and hoping that maybe in 15 years time, the stock might recover.
ya... go think about it.