Dollar-cost averaging mitigates the risk of mistimed investments. It's nearly impossible to perfectly predict market movements. Consider spreading an investment of $1,000 over three months.
Dollar-cost averaging mitigates the risk of mistimed investments. It's nearly impossible to perfectly predict market movements. Consider spreading an investment of $1,000 over three months.
This strategy lets one invest regardless of market ups and downs, stabilizing the average cost.
#Investing #Finance
DCA is such a simple concept, yet so hard to put into practice, at least over time