Dollar Cost Averaging (DCA)

An investment strategy where fixed amounts are invested regularly, reducing the impact of market volatility.

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Dollar Cost Averaging (DCA)

Dollar Cost Averaging (DCA) involves investing a fixed amount at regular intervals, regardless of market conditions. This strategy helps reduce the risk of making poor investment decisions based on short-term fluctuations.

  • Reduces emotional decision-making.
  • Lowers the risk of investing a lump sum at a market peak.
  • Smooths out market volatility over time.

Key Points

1

Helps manage market fluctuations.

2

Encourages long-term investing discipline.

3

Reduces the risk of bad market timing.

Last Updated: 3/16/2025

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