One of the most incorrect phrases that we all hear from many people.
Don't invest all your liquidity at once, but buy a portion and divide your purchases into stages, so that when the price drops, you can buy again and lower your cost.
This sentence is catastrophic like this "in this way", because you are only thinking about the price without considering the direction. In financial markets, we are supposed to buy direction, not just price. I understand that it's not intentional, and that's why we said to mention it.
To clarify the matter simply, what do you think is better?
Buy high and sell higher? Or buy cheap and sell cheaper?
Here the difference is the direction, the direction of prices; if the trend is upward, then there is no problem buying high as long as I sell higher, but if the trend is downward, then the cheap price should go away as long as it continues to drop.
And the problem is that those who advise you say buy every time it drops!! Where should I buy, sir? How do I know where it will drop to?
You will say to me, well, I might buy at a high price and that could be the peak?
Apart from the trend lasting for years while you buy at the last stage, there are also signals here, and in this case, you will have a level to stop losses; you won't buy again and tell me I'm averaging.
And always keep this note in front of you.
Never average down
A very important note, in a downward trend we set a stop loss, we do not average.