Dollar-cost averaging is investing a fixed amount of money at regular intervals, regardless of whether prices are up or down. Instead of trying to time the market by investing a large sum all at once, you spread your investments over time. This approach can reduce the impact of buying at market peaks.
Instead of investing $12,000 all at once, you invest $1,000 every month for 12 months. Some months the investment price is high and your $1,000 buys fewer shares, while other months the price is low and your $1,000 buys more shares. Over time, this averages out your purchase price.
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