What Is Dollar Cost Averaging or DCA?

Dollar-cost averaging, or DCA for short, is an investment strategy where you invest a set amount of money at regular intervals, say weekly, monthly, or quarterly, no matter the price of the investment. This can really help reduce the effects of market changes on your investments, and over time, it can help you build a well-rounded investment portfolio.

The idea behind DCA is that by investing a fixed amount of money on a regular basis, you're buying more shares when the price is low, and fewer shares when the price is high. This helps to even out the overall cost of your investments over time.