Dollar Cost Averaging
Invest Regularly With Dollar Cost Averaging
Dollar cost averaging (DCA) is an investment strategy in which you invest a set dollar amount on a regular basis, such as every month or every year. When the price of your investment rises, your regular investment amount will buy fewer shares. When the price of your investment falls, your dollars buy more shares. This ensures that you buy more shares when prices are low. Using this strategy does not guarantee that you will make money, especially in a consistently rising market. However, it can help you overcome the fear of investing "at the wrong time."
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