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.

Dollar-cost averaging is a popular strategy for building investment positions over time. When you dollar-cost average, you invest equal dollar amounts in the market at regular intervals of time.

Dollar-cost averaging works Because the stock market goes through many ups and downs over time, the odds of you being able to predict or pinpoint the lows with any consistency are extremely slim.

Understanding Dollar-Cost Averaging The function of DCA as an investment strategy is that it ensures investors do not try to “time the market” by investing at times that seem opportune (such ...

Dollar cost averaging can be a smart way to invest because it mitigates certain risks inherent in investing. For the most part, you can't predict when the market will go up or down.

Dollar-cost averaging takes a lot of the effort and worry out of investing. Image source: Getty Images. Bonus time for some is around the corner, and you might be coming into a nice chunk of change.

Dollar-cost averaging into the index over two years produces much lower volatility. But as you can see, you can achieve the same level of volatility by lump-sum investing in an appropriate asset ...

Another risk of dollar-cost averaging is that you may be diminishing your long-term returns. If you only buy when the market goes down, for example, you’re more likely to generate profits when ...

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.