What is cost averaging in stocks? Cost averaging is the strategy of buying a fixed dollar amount of a security at fixed intervals. By buying the security in this manner, the cost of the investment is averaged over time. The advantage of cost averaging is that it reduces the effects of market volatility on the […]
What Is Dollar Cost Averaging In Stocks
Dollar cost averaging is a technique of investing a fixed sum of money into a security or securities at fixed intervals. When the security’s price goes down, the investor buys more shares; when the security’s price goes up, the investor buys fewer shares. The goal of dollar cost averaging is to reduce the effects of […]
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