Dollar Cost Averaging
From finiki
| |
This article is a stub. Please improve this article if you can, or talk about solutions on the discussion page. |
- See also Dollar Value Averaging
Introduction
Dollar cost averaging (DCA) is a market timing method where the investor buys a fixed dollar amount of a security on a preset schedule.[1] It results in more shares being bought when the price is down and less shares being bought when the price is up.
References
- ↑ Wikipedia, Dollar Cost Averaging, viewed March 12, 2009.