I see a lot of people talking about dollar cost averaging and I think that it’s a really good idea. As the market goes down, you buy more so that your average cost per share decreases.
My question is, does it make sense to dollar cost average out of the stock as well? For example, let’s say that I want to own 20k usd worth of Tesla. If Tesla continues to rise so that I could sell a share and still have 20k would it make sense to do that and dollar cost average out? In the same sense that Tesla goes down so I have less than 20k I would then purchase more shares to get my total value of Tesla stock up to $20,000?
This seems like a really simple concept of just having the same value of equity in the company and no one really talks about it, am I missing something?