DCA - Dollar Cost Averaging. It is an investment strategy where an investor regularly invests a fixed amount of money into a particular investment, regardless of the asset's price or market conditions. The goal of DCA is to reduce the impact of market volatility and potentially benefit from long-term growth.
Dollar cost averaging works by buying more shares when prices are low and fewer shares when prices are high. Over time, this strategy aims to lower the average cost per share of the investment. It can be particularly useful for long-term investors who are looking to accumulate assets gradually and minimize the risk associated with trying to time the market.
The success of DCA depends on the performance of the underlying investment and the investor's ability to stick to the strategy consistently.
