Plain-English definitions, reviewed by an independent investor
Dollar-Cost Averaging
Dollar-cost averaging invests a fixed amount on a schedule, buying more shares when prices are low.
Dollar-cost averaging invests a fixed amount on a schedule, buying more shares when prices are low.
(Fixed sum at fixed intervals, regardless of price)
Why it matters
It removes the urge to time the market and smooths your entry.
Common confusion
In a steady rise it lags a lump sum, but it tames regret and risk.
Frequently Asked Questions
DCA vs lump sum?
DCA is steadier and less regret-prone; lump sum wins in rising markets.
Why does DCA work?
It automatically buys more when cheap and less when dear.