importance of DCA .
Dollar-cost averaging (DCA) in Trading .
1. lower your investing costs and reduce risk at the same time.
2. Dollar-cost averaging is the practice of systematically investing equal amounts of money at regular intervals, regardless of the price of a security.
3.beginers & long-time investors can both benefit from dollar-cost averaging.
4. investors buy more at lower prices and sell at at higher prices .
5. Dollar-cost averaging can reduce the overall impact of price volatility and lower the average cost
6.Dollar-cost averaging is an investment strategy used to minimize the impact of price volatility. DCA is also called the constant dollar plan.
Always remember this golden Rule if You are into trading Never get all in at one price , because market is superior and know one knows what's the bottom and what's the top .
DCA example :
for an example let's take ,
my name is Mr X I do have 100$ to invest in crypto
so as today
BTC is currently at 27.4k around so I invested 30$ btc .
then after some days btc fall towards 25k I invested 30$ more so I do have left 40$ if after sometime btc will fall more I can buy at that particular time . that will help to maintain the DOLLAR average cost , and my risk will be less .
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