Dollar-Cost Averaging (DCA)

An investment strategy of buying a fixed dollar amount of an asset at regular intervals, regardless of price. Reduces the impact of volatility by averaging the purchase price over time.

By buying a fixed dollar amount on a schedule, you automatically purchase more shares when prices are low and fewer when they are high, lowering your average cost per share versus lump-sum timing. It also removes the temptation to guess market tops and bottoms.