Averaging the price/ SIP in stocks/buy on dips

Hello!

I have heard from many people to buy excellent stocks gradually, however one question bugs me a lot -

If the price of the share keeps increasing and we keep on buying it, won’t the average share price increase?

So won’t the profits decrease?

I’m asking for a long-term perspective.

I have reliance share @900 rs but seeing the current price and in the future, it seems that it won’t come back to the 900 levels.

What should I do? I want to accumulate more shares but buying at higher prices will make avg share price go up.

Please help me with this dilemma.

Look like you are new to markets, I would suggest you to go through varsity.

Coming to your query that is just a basic maths, for ex, you bought 100 quantity at 900, another hundred at 1500, another 100 at 2000 and imagine if current price is 2100 so you made 1200 per share as profit for 100 stocks which are bought at 900, 600 per share for shares bought at 1500, 100 per shares for shares bought at 2000. Overall average price may go up but quantity is also going up right?

Hey, thanks for the answer.