Dollar-cost averaging is an investment strategy that involves regularly investing a fixed amount of money regardless of market conditions.

It works by buying more shares when prices are low and fewer shares when prices are high, averaging the overall cost over time.

To invest using dollar-cost averaging, set a fixed amount and invest it consistently at predetermined intervals, such as monthly or quarterly.

This strategy reduces the impact of market volatility, as it eliminates the need to time the market.

It works well for small amounts as it allows investors to gradually build a portfolio without needing a large lump sum.

By investing regularly, investors benefit from purchasing more shares when prices are low, potentially maximizing returns in the long run.

Dollar-cost averaging encourages disciplined investing and helps mitigate the risks of making poor investment decisions based on short-term market fluctuations.

This strategy is suitable for long-term investors who prioritize consistent growth and are willing to stay invested over an extended period.

It can be implemented in various investment vehicles, including mutual funds, index funds, or ETFs, depending on individual preferences.

Consult with a financial advisor or utilize online investment platforms to easily set up and automate your dollar-cost averaging strategy.

Next: The Power of Contrarian Investing

Next: The Power of Contrarian Investing