Theessence of allsuch plans-except the simplecase of dollaraveraging-is that the investor automatically doessomeselling of commonstockswhen the market advances substantially.
Toyota could end up doing even better than its forecasts, as it is counting on the dollaraveraging at 81 yen for the fiscal year, while it's already at 92 yen levels in recent sessions and could rise further.
During the strongest markets, though, dollar-cost averaging produced 19.2% less wealth than lump-sum investing, while during periods of average market performance, averaging in produced 3.6% less wealth meaning that, in typical markets, dollar-cost averaging will cost you 3.6% of your holdings.