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Re: why is TMR tanking?

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Subject: Re: why is TMR tanking?
Poster: catalpa
Date: Tue, 13 Mar 2007 04:22:25 GMT
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wrote in message news:1173698935.108308.218110@h3g2000cwc.googlegroups.com...
> On Mar 11, 8:48 pm, "catalpa" wrote:
> > In case you never noticed, stocks can and do go to zero.
>
> I have noticed stocks going to zero. DCA is still a very safe method
> to invest. I'll go even one further, I think it's THE safest way to
> invest in stocks aside from how I invest, which is a loooong story.
>
> >DCA only works when the stock or mutual fund goes up in the long term.
>
> Nope. Even if the stock drops a little before you exit you'll still
> come out ahead.
> Search DCA and you'll see the math is on my side. I've doubled my seed
> capitol in less than 5 years doing DCA even though the stock only
> increased marginally.
>

Kindly explain the mathematics behind making money on a stock with DCA when the price is monotonically decreasing.

 

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