Dollar-cost averaging is a strategy that tries to minimize those risks by building your position over time. When you dollar-cost average, you invest equal dollar amounts in a security at regular ...

Here’s how dollar-cost averaging performs in a market that’s going mostly sideways, with a few ups and downs. Let’s assume that $10,000 is split equally among four purchases at prices of $50 ...

DCA builds investment discipline. Like a regular 401(k) deduction from your paycheck, dollar-cost averaging forces you to think long term, invest consistently and with discipline.

By dollar-cost averaging, or making a consistent investment of $50 each month, you would have ended up with 64.61 shares.

Dollar cost averaging is a strategy that can help you lower the amount you pay for investments and minimize risk. Over the long term, dollar cost averaging can help lower your investment costs and ...

Dollar cost averaging can ensure that you invest your money in equal monthly amounts. You can buy whatever amount of shares you can for $2,000 every month and you can do this for six months.

Learn how dollar-cost averaging works in 2025, its benefits, potential drawbacks, and how to get started with this straightforward investing strategy.

Dollar-cost averaging could also look like if you decide to invest $5,000 of your savings by splitting that cash into five parts, where $1,000 is invested each month for five months.

By dollar-cost averaging, or making a consistent investment of $50 each month, you would have ended up with 64.61 shares. That’s near the middle point between buying low and buying high.