Dollar-Cost Averaging! What It Is And How It Works! | Clever Girl Finance
There are a number of investing strategies and dollar-cost averaging is one of them. Dollar-cost averaging or DCA is when the total amount you want to invest is purchased over a certain amount of time to reduce the impact of volatility on your overall portfolio.
Keep in mind that this strategy assumes that prices will eventually always rise. And while historically that is accurate, the strategy can’t protect you from the risk of an extended declining market.
Do you leverage dollar-cost averaging? Leave a comment below!
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