Investing Dictionary
Strategies

What is Dollar-Cost Averaging?

Invest a fixed amount every month no matter what

Full Explanation

Instead of investing all at once, you invest the same amount every week or month. You automatically buy more shares when prices are low and fewer when high.

Real-World Example

Invest $100 every month in SPY regardless of price.

Pro Tip

Removes emotion from investing. Great for beginners.

Related Strategies Terms

Tax-Loss Harvesting

Selling losing investments to reduce your tax bill

Value Investing

Buying stocks that are cheaper than they're worth

Buy and Hold

Buy stocks and keep them for years

Contrarian Investing

Buying what everyone else is selling, and selling what everyone is buying

View all Strategies terms →

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