Dollar cost average into and out of your positions, buying and selling at fixed rates, set amounts of money. This will allow you to avoid buying it at a peak or selling out at a bottom.
Creating a Dollar Cost Average Plan
There are a number of steps a trader must take in order to develop a sound dollar cost averaging plan.
Then 3 months later another purchase at 47 7/8 to dollar cost average, (of course for a higher degree of profit). Then again in Sept. '98 an even bigger purchase at 29 5/8. Finally when the stock hit 22 I called it quits and sold all 4,000 shares.
"Dollar cost average helps to hedge against the ups and downs of the market; moreover, one should have been buying up stocks during the last 3 years, though I do agree with your cashing out in 2000.
He might also have encouraged you to buy an equal amount to "dollar cost average" your position so that when ("if"- he didn't say that, I did)) it did go back up you could "get out even". He might even say you "could make a fortune".
Up)- To purchase shares of the same security at successively higher prices, lessening the risk of investing a large amount in a single investment at the wrong time. If you initially buy a stock at $10 and reinvest at $11, your Dollar Cost Average ...
 See also: Average, Stock, Investing, Investment, Vesting
  
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