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Dollar Cost Averaging
Dollar cost averaging is one of the simplest investment strategies you can use to manage the risk of investing. That's because you don't have to try and time the market's ups and downs, and you don't invest all of your money at once.
Instead, you invest slowly and systematically. When prices are low, your money buys more of the underlying investment option than when prices are high. The intent is to buy the maximum number of units at the lowest possible price, thereby enhancing your prospects for higher overall investment returns in the long run. Keep in mind however, that dollar cost averaging does not ensure a profit or protect against losses in a declining market. You should also consider your financial ability to continue to invest through periods of low prices.
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