By dollar-cost averaging, or making a consistent investment of $50 each month, you would have ended up with 64.61 shares. That’s near the middle point between buying low and buying high.

Market dips can feel more powerful than months of investing. Here’s why that happens—and how dollar-cost averaging can help you stay steady and build wealth.

Dollar-cost averaging is a popular strategy for building investment positions over time. When you dollar-cost average, you invest equal dollar amounts in the market at regular intervals of time.

Dollar cost averaging can be a smart way to invest because it mitigates certain risks inherent in investing. For the most part, you can't predict when the market will go up or down.

Understanding Dollar-Cost Averaging The function of DCA as an investment strategy is that it ensures investors do not try to “time the market” by investing at times that seem opportune (such ...

Dollar-cost averaging takes a lot of the effort and worry out of investing. Image source: Getty Images. Bonus time for some is around the corner, and you might be coming into a nice chunk of change.

Another risk of dollar-cost averaging is that you may be diminishing your long-term returns. If you only buy when the market goes down, for example, you’re more likely to generate profits when ...

By dollar-cost averaging, or making a consistent investment of $50 each month, you would have ended up with 64.61 shares. That’s near the middle point between buying low and buying high.