Dollar Cost Averaging

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Dollar Cost Averaging is an investment strategy where you invest a fixed dollar amount in a stock, mutual fund or ETF periodically (usually every month) irrespective of the stock price, and without worrying about market tops and bottoms.

You buy less stocks when the stock price is high, but when the stock price goes down, you buy more stocks for the same amount. That way, your average purchase price per stock stays low over time, and you get great returns in the long term.

For more information, please visit: Dollar Cost Averaging Explained for Kids: Always Make Money in the Stock Market

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