Dollar cost averaging
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A strategy that can make it easier to deal with uncertain markets by making purchases automatic.
It also supports an investor’s effort to invest regularly.
It involves investing the same amount of money in a target security at regular intervals over a certain period of time, regardless of price.
In effect, this strategy eliminates the effort required to attempt to time the market to buy at the best prices.
By using dollar-cost averaging, investors may lower their average cost per share and reduce the impact of volatility on the their portfolios.