Dollar-Cost Averaging

Dollar-cost averaging (DCA) means investing a fixed amount at regular intervals — say $200 every payday — no matter what the market is doing. When prices are high, your $200 buys fewer shares. When prices drop, it buys more. Over time, this smooths your entry price and reduces the pressure to guess whether now is a good time to invest. It can lower your average cost in volatile or falling markets, but it does not guarantee a lower cost or better return than investing a lump sum immediately. With DCA, the behavioral win is consistency: keep buying according to the plan.