What Is Dollar-Cost Averaging?

The famous Dollar-cost averaging or simply DCA is basically an investment strategy where you as an investor divide up the total amount to be invested across periodic purchases of a target asset in an effort to reduce the impact of volatility on the overall purchase.

DCA is also known as simple the constant dollar plan.

The buying process happens no matter of the asset’s price and at regular intervals.

DCA is a strategy which removes much of the detailed work by trying to time the market in order to make purchases of equities at the best prices.

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