Finance Library
InvestingBeginner 4 min read
Dollar-Cost Averaging
Investing the same amount on a schedule — boring on purpose.
What it is
Dollar-cost averaging (DCA) means investing a fixed amount on a fixed schedule — for example, $200 into an index fund every payday — regardless of price.
Why it works
Your fixed dollars automatically buy more shares when prices are low and fewer when they're high. Over time, your average cost per share tends to land in a healthy range without any market timing.
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