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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[Clevergirlfinance]

Do you leverage dollar-cost averaging? Thanks for tuning in!

[briannadau]

Super helpful, thank you for sharing!

[Aaaayyyeee]

Yes I do and I will do more now, thanks for this explanation

[suebee]

I DCA to a registered retirement fund every two weeks. It gives me a lump sum back on taxes every spring and I put that into it as well.

[ladyinmauve]

I DCA for my 5yo daughter. AAPL stock every month. Even if just one share. Consistency is key.

[milanigold]

Random question but what mic do you use please ?

[eg]

Started lump sum investing in individual stocks on Robinhood but with the dip had to start dca. I invest in mutual funds& index funds on Fidelity.