Glossary

Dollar Cost Averaging (DCA) is an investment strategy where you invest a fixed amount of money at regular intervals, regardless of market conditions. 💵

This approach helps you avoid trying to time the market and reduces the risk of buying at a high price. Over time, the average cost per share you've purchased will likely be lower than if you tried to buy all your shares at once.

For example, if you invest $100 per month in a mutual fund for a year, you'd be using the DCA strategy.

Fun fact: Dollar Cost Averaging can work in your favor during periods of market volatility. 🎢 When prices are low, your fixed investment amount will buy more shares, and when prices are high, it'll buy fewer shares. This can result in a lower average cost per share over time.