BeginnerStrategy
Dollar-Cost Averaging (DCA) Explained
Dollar-Cost Averaging (DCA) means investing a fixed amount at regular intervals — automatically buying more when prices are low, less when high, smoothing your average cost over time.
TL;DR
Dollar-Cost Averaging (DCA) means investing a fixed amount at regular intervals — automatically buying more when prices are low, less when high, smoothing your average cost over time.
What is DCA?
DCA means investing a fixed dollar amount at regular intervals regardless of price. When prices are low, you buy more shares; when high, fewer. The key benefit: eliminating the psychological burden of timing the market.
Key Terms:
DCAaverage cost