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Dollar Cost Averaging (DCA)

By Pinyo • Mar 2nd, 2008 • Category: D

Dollar cost average, or DCA, is the technique of buying a fixed dollar amount of a particular investment on a regular schedule, regardless of the share price. More shares are purchased when prices are low, and fewer shares are bought when prices are high. Dollar-cost averaging lessens the risk of investing a large amount in a single investment at the wrong time. However, most investors are better off investing the entire lump sum of money instead of using dollar cost averaging due to the general trend of the stock market.

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  1. Does Dollar Cost Averaging Work? | Moolanomy

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