Dollar-Cost Averaging

Dollar-cost averaging is an investment strategy where an investor consistently invests a fixed amount of money at regular intervals, regardless of market conditions. This approach helps reduce the impact of market volatility on the investment. By buying more shares when prices are low and fewer shares when prices are high, the investor averages the cost per share over time. This method can minimize the risk of making poor investment decisions based on short-term market fluctuations and encourages a disciplined approach to investing.