Dollar-Cost Averaging
Dollar-cost averaging (DCA) means buying a fixed dollar amount on a fixed schedule — $50 every Friday — regardless of price. You automatically buy more whe
Dollar-cost averaging (DCA) means buying a fixed dollar amount on a fixed schedule — $50 every Friday — regardless of price. You automatically buy more when cheap and less when expensive, removing timing decisions (and timing emotions) entirely.
Why it matters
DCA is the strategy with the best beginner track record for one reason: it makes volatility your employee instead of your boss. No charts, no predictions, no panic-selling the bottom — just accumulation through full cycles. Boring, automatic, and historically brutal to underperform by trading instead.