tag:blogger.com,1999:blog-21734860.post2444129688640471412..comments2021-05-23T09:23:40.339-07:00Comments on Byron's Blog: ResponseByron Knollhttp://www.blogger.com/profile/07033149054635249156noreply@blogger.comBlogger2125tag:blogger.com,1999:blog-21734860.post-40438331217175771162013-01-24T11:18:24.972-08:002013-01-24T11:18:24.972-08:00Because the variance keeps increasing over time, t...Because the variance keeps increasing over time, the distribution of the mean over the longer period actually has a higher variance than the distribution of sampling a single point immediately. If this wasn't true, the strategy I mentioned in the post could be used to make huge amounts of money.Byron Knollhttps://www.blogger.com/profile/07033149054635249156noreply@blogger.comtag:blogger.com,1999:blog-21734860.post-13933612269957415042013-01-24T11:10:48.977-08:002013-01-24T11:10:48.977-08:00But the variance of the stock price from now into ...But the variance of the stock price from now into the future isn't really what you care about. The point of spreading your buys or sells over a period of time is to be close to the mean of that longer period. Since you're sampling multiple points from the period, so you're more likely to be close to the mean of that period than sampling just one point.Jackienoreply@blogger.com