How to maintain DCA (average cost):
Let's suppose someone has 500 dollars, as I always suggest that we should divide our portfolio in 4 to 5 parts.
Out of those 500$ someone want to buy Polka Dot and the price of Polka Dot is 4.5
Buy at least 30 Dots i.e
4.5*30= 135 (price of Dot * total number of Dot bought= number of dollars used)
Now wait for at least 7% of market downward which is (4.5*7/100=4.2)
Now you can buy 30 Dots at 4.2
4.2*30= 126$
If still market goes down you can buy more 30 Dots at 7% lower price i.e
3.9*30=117
With all this if you go for average cost$
4.5/3+4.2/3+3.9/3 = 4.2 #
You have 4.2 average If market reaches 4.2 you can sell your all 90 Dots without getting profit or loss also if market goes upto 4.3 or 4.4 you will get nice profit
4.4*90= 396 i.e 18 dollars profit Simple and easy. So follow for more information