Dollar cost averaging

Dollar cost averaging (DCA) is an investment strategy which aims to apply value investing principles to regular investment. The term was coined by Benjamin Graham in his 1949 book The Intelligent Investor. Graham writes that dollar cost averaging "means simply that the practitioner invests in common stocks the same number of dollars each month or each quarter..

In this way one buys more shares when the market is low than when it is high, and he is likely to end up with a satisfactory overall price for all their holdings.

Back to Investing Concepts →

Source: Wikipedia · Image: Wikimedia Commons · CC BY-SA 4.0

STOCKTRICK

Trade informed — market guides, trading calculators, and investing insights (educational, not advice).

Get new guides by emailOccasional emails. No spam. Unsubscribe anytime.

InformationAbout Contact Privacy Policy Terms of Service Disclaimer Affiliate Disclosure Cookie Policy

Every species, image, fact, and figure is drawn from Wikipedia and Wikimedia Commons, used under public-domain and Creative Commons licenses. No content is AI-generated.