Cost Averaging Strategy

The "U" example illustrates the benefits of a cost averaging strategy.

A "U" in the stock market simply means that prices fall from a peak and then rise again after reaching a bottom - just like the letter U. For example, if you invested $1,000 in the token at the beginning of the "U", passing through the bottom, and then sold it at the end of the "U" when prices returned to their initial levels, you would not make any return.

With the cost averaging strategy, things work differently. For example, if we divide $1,000 over ten months, at $100 per month, we will be able to buy more and more tokens for the same amount when the prices start to fall. In both cases, we invest a total of $1,000. If the prices rise to the initial level, as in the case of the "U" shape, then you have already won compared to the lump sum investment. The invested money will bring a positive return, even if the exchange rate is the same as when you started the investment. The stronger the "U", the higher the return. Exchange rate fluctuations are very common, especially on stock exchanges. That is why it is worth saving regularly and continuously, especially for volatile investments like a Mame token. However, even with the cost averaging approach, there is no guarantee that the investment will perform positively. This theory is valid when it comes to a predictable, well-structured token, in which we are sure that its price will go up.

Why is this method, also known as the Dollar Cost Average strategy, included here? It is a method recommended for investors and not for traders. So if you are more of a trader, this is not for you. But if you are an investor type, then this is an excellent strategy. Of course, this is only a recommendation and not advice. The decision is in your hands. 

The Gery token is exactly like this due to continuous token burning and liquidity loading.