- Invest More when Value of Share Falls
- Invest Less when the value of Shares Rises.
It is done by calculating the predetermined amounts for the total value of investments in the future periods and then making an investment to match these amounts at each future period.
In value averaging, the investor sets a target growth rate or amount on his or her asset base or portfolio each month and then adjusts the next month's contribution according to the relative gain or shortfall made on the original asset base.
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