Your Grandma’s Urban Investment Strategy: Dollar Cost Averaging (DCA)

Dollar Cost Averaging (DCA for short in English), although dollar cost averaging seems to be a "high-end" trading strategy, dollar cost averaging is actually just a financial management method that is promoted by various banks. It is also called the "lazy man's financial management technique" or the "regular fixed amount investment method". It is an investment strategy that purchases an asset for a fixed amount at specific intervals.

What are the advantages of cost averaging (DCA)?

Regular purchases can smooth out the average price of purchases. In the long run, dollar-cost averaging can reduce the negative impact (a decline in asset value) of a poorly timed entry, even if we purchase the asset at a high price point.