Dollar-cost averaging means investing a fixed amount on a fixed schedule regardless of price. You automatically buy more units when prices are low and fewer when high, and — the real benefit — you stop having an opinion to be wrong about every month. It removes timing from the equation by removing the decision.
Check yourself
The strongest argument for investing on a schedule is that it…
Guarantees a better price
Removes the timing decision, and the emotion with it correct
Beats lump-sum investing on average
Lump sums actually win slightly more often mathematically. Schedules win behaviourally, and behaviour is what usually breaks.
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