Dollar-cost averaging (DCA) is a strategy that many investors find appealing, especially in volatile markets. Let’s explore its mechanics, advantages, drawbacks, and suitability for different investment scenarios. Mechanics of Dollar-Cost Averaging: Example Illustration: Suppose you have $5,000 to invest in a stock over five months using DCA: After completing all trades, you purchased a totalContinue reading “Navigating Market Volatility: The Power of Dollar-Cost Averaging”
