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Why Cutoff Points Make Sense

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While the investor may be buying more shares at each interval due to lower prices, having more shares of continually declining stock simply adds insult to injury. For this reason, an investor must have a cutoff point at which he/she ceases purchasing the stock at regular intervals. Fluctuations in market price can be absorbed and an investor can still make a healthy profit using the dollar cost averaging stock strategy but a declining stock is just a losing stock.
Source: http://www.investorguide.com/igu-article-967-stock-strategies-dollar-cost-averaging-stock-strategy.html

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