Yeah, and people take on far too big of risks in the other bubble assets. For instance, bitcoin is down 14% today so far.
Yep, the lower tranches make up the bulk (and sometimes all) of the gain. We own more shares at those lower prices, even though we own the same dollar amount. Those larger shares at lower levels really do wonders for us, in overall % return. Much of the time, we don’t even need the price to trend higher than our original entry price in order to have a massive gain as if we’d been in a massive uptrend.
You’re welcome. Yep, without the downtrend from the entry price, there would be no averaging down. And with averaging down comes turbo-charged gains, with no uptrend in the stock required. And we took on lower risks to get that return than a momentum/trend-trader would to get the same return.