Dollar Cost Averaging (DCA)

Dollar cost averaging (DCA) is a long-term strategy that involves investing the same sum of money over a long period of time, regardless of share price. By employing dollar cost averaging, investors can lower their average cost per share and lessen the effects of volatility on their portfolio. This tactic effectively eliminates the need to try to time the market to buy at the best pricing. By making a fixed investment, investors can buy more shares when the price is low and fewer shares when the price is high. This could lower the average cost of your investments overall.