What Is Dollar-Cost Averaging?
Definition and plain-English explanation of "Dollar-Cost Averaging"
Dollar-cost averaging (DCA) involves investing a fixed amount of money at regular intervals regardless of market conditions — for example, $200 every month into an S&P 500 ETF. This strategy automatically buys more shares when prices are low and fewer when prices are high, reducing the impact of volatility and removing the need to time the market.
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