DCA (Dollar-Cost Averaging)
Market
Investing fixed amounts at regular intervals regardless of price.
Dollar cost averaging spreads buys over time so your average entry is less sensitive to short term moves. For many people it is easier to follow than trying to time every swing.
Frequently asked questions
Why do people use DCA?
It reduces timing risk by spreading buys across time. You avoid the stress of picking the perfect entry.How do I set a DCA plan?
Choose an amount, a schedule, and a simple rule for reviewing. Automate where possible and stick to the plan.Should I ever pause DCA?
You can pause for major life events or if a thesis breaks. Write criteria in advance so changes are deliberate.