Potential buying strategy, thoughts? via /r/wallstreetbets #stocks #wallstreetbets #investing


Potential buying strategy, thoughts?

How fast can this spiral out of control? How much in gains could be missed?

Start with $1,000 worth of VTI. Each month deposit $25 to buy more, with exceptions.

If account grew at least $25 in a month on its own then don’t deposit anything. So if it grew to $1,030 then do nothing.

If account grew between $0 – $25 then deposit the difference. So if it grew to $1,020 then deposit $5.

If it lost value then deposit $25 plus what it lost. So if it dropped to $990 then deposit $35.

Each month restarts the beginning amount. So if it grew to $1,100 the first month but down then $1,085 the next, you’d deposit $0 and $40, respectively. Note this is less than the expected $50, yet the account is also $35 higher than expected.

However, if it drops to $900 then $900 again you’d have to deposit $125 and $150 (bringing it up to $1,025 and $1,050 at month ends).

You’d be missing out by not putting in cash on the way up. And losing control when it drops and you’re shoveling more in. What’s the long term math on this?

Submitted August 01, 2022 at 07:39PM by shapsticker
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