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What is Dollar Cost Averaging and How to Use It 

When it comes to investing, dollar cost averaging is something to be familiar with. It can help you make good investment decisions!

What is Dollar Cost Averaging?

Dollar-cost-averaging (DCA) is a systematic program of investing equal sums of money at regular intervals regardless of the investment’s price.

Dollar Cost Averaging

Regular, same price investments force you to ignore the purchase price, and focus instead on just putting in the investment.

Terrain Map

Benefits of this approach

- Reduce Risk -Create investor discipline - Lower your cost basis (average price per share) - remove emotion from investing

White Bag

A conservative approach -Possible opportunity costs - May forfeit higher returns

Disadvantages:

Who Should Do This

For beginner investors, this is a great approach. Also anyone who likes to "set it and forget it" this is a great way to do it!

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