Investing Basics
Dollar-Cost Averaging
Investing the same amount at regular intervals instead of all at once.
Also called: DCA, periodic investing
What it means
Dollar-cost averaging is the practice of putting in a fixed amount of money on a regular schedule, such as every month, regardless of whether prices are high or low. This can spread entry points over time, though it does not guarantee profit or protect against losses.
Why it matters
It gives beginners a simple framework for steady investing and can reduce the pressure of trying to time the market.