A strategy that involves regularly investing a fixed amount of money, regardless of market conditions.
Dollar-Cost Averaging (DCA) is an investment strategy where an investor allocates a fixed sum of money to purchase an asset at regular intervals, such as monthly or quarterly. By consistently investing regardless of market fluctuations, the investor buys more shares when prices are low and fewer shares when prices are high. This approach reduces the impact of market volatility and helps to mitigate the risks associated with timing the market. Over time, DCA can lead to a lower average cost per share and can be especially effective in long-term investing, promoting disciplined saving habits and reducing the emotional stress of investing.
Time in the market beats timing the market.
