Quote:
Originally Posted by BossChief
Give me a better explaination.
Thx in advance.
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Dollar cost averaging doesn't mean you're just buying at random times and averaging the price. Actual dollar cost averaging is buying at select intervals (i.e. Each month), knowing sometimes you'll buy high and sometimes you'll buy low. However, the value is always the same. Something like me investing $300 at the start of each month into my ROTH, regardless of what the market is doing. As opposed to waiting for a "dip" and investing a larger lump sum.
There's pros and cons to both ways in that scenario.