Dollar Cost Averaging

Dollar Cost Averaging

Dollar Cost Averaging 700 340 Jonathan Poland

If you follow me on Instagram, you saw me post a chart on Foot Locker at $48.50 last June. By October, the stock was trading for $30 a share and I called for dollar cost averaging. Today, with the stock back above $49, the investor that did that made 32% on their money. You can only do this in good companies and despite the short term drop, Foot Locker is a good company.

Here’s how it would have played out.

  1. You opened the initial investment with 100 shares at $48.50
  2. The stock falls
  3. You buy the same dollar amount at the lower price of $30, 160 shares
  4. The stock rises
  5. You now have 260 shares at $49 for $12,740 on a $9,700 investment
  6. You just made 30% on your money
  7. The S&P 500 gained 13%, you win.
  8. Congrats!

To me, trading doesn’t mean sitting in front of your computer all day for pennies. It means buying something because you think it’s undervalued at one price with the understanding that in the short term (daily/weekly/monthly), it may drop. In fact, the chances that it will are at least 50 50. But, over the longer term (1 year or greater) good companies tend to trade higher, especially if bought at the right multiples.


For 15 years, I published a monthly

newsletter highlighting my very best

ideas across the capital markets

to a select group of investors.

The results speak for themselves.

Performance History

an introduction

Today, I run a membership for

business leaders dedicated to

profit and progress.

Performance results are unaudited pre-tax figures based on buy and sell prices at the time of publication and may vary from actual trade prices by subscribers. Trade ideas were issued via email and various pdf files. My goal has always been to highlight investments that can collectively deliver 100% gains over a 3 to 5 year period. These are typically stocks, but may include options, commodities, real estate, and other investments where I feel confident in my analysis. If you have any questions, get in touch.
Disclaimer: I am not a registered investment adviser. Under no circumstances does any information published in my newsletter represent a recommendation to buy or sell a security. The information on this website is not intended to be, nor does it constitute, investment advice or recommendations. In no event shall I be liable to any subscriber, guest or third party for any damages of any kind arising out of the use of any content or other material published or available on this website or its related newsletters, or relating to the use of, or inability to use, this website or any content, including, without limitation, any investment losses, lost profits, lost opportunity, special, incidental, indirect, consequential or punitive damages. The information on this site is in no way guaranteed for completeness, accuracy or in any other way. Past results do not guarantee future performance.
Note: My research is and has always been of a general and impersonal nature, in that the advice provided is not attuned to any specific portfolio or any client’s particular needs; and is of general and regular circulation, in that it is not timed to specific market activity or to events affecting, or having the ability to affect, the securities market.