Is it better to Average Up or Average Down?

This has become a common problem for many investors who got in during the market meltdown and purchased shares at extreme lows.

Considering how investors who have gotten in during the last few months and are facing some losses, this is a great problem to have.

That said, DCAing up or down depends on how much you hold and what your trajectory is.

If you are holding for the long term, then there is no problem in buying shares on the rise. It is best to avoid purchasing huge volumes when they are on a meteoric ascent and nearing all-time highs. You would be better off DCAing up when there is a dip in the share price.

Ultimately, it is always better to DCA down. However, if you got in on the ground floor, you will end up DCAing up anyway.