Hi everyone! 👋
Dollar-Cost Averaging (DCA) is an investing strategy where you invest a fixed amount of money at regular intervals (e.g., weekly or monthly), regardless of market conditions.
Why DCA is a Smart Strategy:
- Reduces market volatility impact: You buy more when prices are low and less when prices are high, averaging out the cost over time.
- Avoids emotional investing: DCA takes the guesswork out of timing the market, helping you stay consistent and avoid reacting to short-term price changes.
- Ideal for long-term growth: It’s a simple and effective way to build wealth steadily, especially if you're investing for retirement or other long-term goals.
Example:
If you invest $500 every month, some months you might buy more shares when prices are low, and fewer when prices are high. Over time, this strategy can lower your average cost per share.
💬 Do you use Dollar-Cost Averaging? Let me know how it’s worked for you or ask any questions below!