Dollar-Cost Averaging

Automated investing — sometimes called dollar-cost averaging — means investing a fixed amount at regular intervals no matter what the market is doing. Set up automatic contributions to a retirement account or investment app on every payday.

When prices are low, your fixed amount buys more shares; when prices are high, it buys fewer. Over time this smooths out your average cost per share with no market timing required.

The biggest advantage is not the math — it is the behavior. Automated investors do not panic-sell during crashes or FOMO-buy during rallies. They keep investing through every cycle, and that consistency is what builds real long-term wealth.