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WCP: The Best Way to Invest Your Time and Money

  • Broadcast in Education
Faheem Shuaibe

Faheem Shuaibe

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A Job, A Business, A Portfolio of Investments

What is Dollar-Cost Averaging (DCA)? 

Dollar-cost averaging (DCA) is an investment strategy in which an investor divides up the total amount to be invested across periodic purchases of a target asset in an effort to reduce the impact of volatility on the overall purchase. The purchases occur regardless of the asset's price and at regular intervals; in effect, this strategy removes much of the detailed work of attempting to time the market in order to make purchases of equities at the best prices. Dollar-cost averaging is also known as the constant dollar plan.

 

 

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