Dollar cost averaging (DCA) is an investment strategy that aims to apply value investing principles to regular investment. The term was first coined by Benjamin Graham in his book The Intelligent Investor. Graham writes that dollar cost averaging "means simply that the practitioner invests in common stocks the same number of dollars each month or each quarter. In this way he buys more shares when the market is low than when it is high, and he is likely to end up with a satisfactory overall price for all his holdings."
Dollar cost averaging is also called pound-cost averaging (in the UK), and, irrespective of currency, unit cost averaging, incremental trading, or the cost average effect.[1] It should not be confused with the constant dollar plan, which is a form of rebalancing investments.
The technique is so called because of its potential for reducing the average cost of shares bought. As the number of shares that can be bought for a fixed amount of money varies inversely with their price, DCA effectively leads to more shares being purchased when their price is low and fewer when they are expensive. As a result, DCA can lower the total average cost per share of the investment, giving the investor a lower overall cost for the shares purchased over time.[2] The alternate strategies are to purchase a fixed number of shares each time period, or to save up the funds that are available for investment and attempt to purchase shares at times when the market is low, i.e. market timing. A major advantage for the investor using DCA is not having to make a decision on a day to day basis about the best time to invest the funds, but there are obvious advantages in simplicity and also in promoting habitual or automated regular investing.
Dollarcostaveraging (DCA) is an investment strategy that aims to apply value investing principles to regular investment. The term was first coined by...
claimed to provide a greater return than other methods such as dollarcostaveraging. With the method, investors add to (or withdraw from) their portfolios...
lines, moving averages, and the Average Directional Index (ADX) to determine the existence and strength of trends. Dollarcostaveraging (DCA), also known...
there are more than a few time periods or more than a few assets. Dollarcostaveraging is gradual entry into risky assets; it is frequently advocated by...
claims to free the investors from speculating in volatile markets by dollarcostaveraging as the investor is getting more units when the price is low and...
fixed cost would be 30 dollars. In this case, the average fixed cost of producing 5 shirts would be 30 dollars divided by 5 shirts, which is 6 dollars. In...
Trinidad and Tobago switched from the British West Indies dollar to the new Trinidad and Tobago dollar, and that switch was "at par", meaning that the Central...
investment tool because it takes advantage of both dollarcostaveraging and compounding. Dollarcostaveraging is the principle of investing a set amount of...
airline Direct corporate access, part of UK Faster Payments Service Dollarcostaveraging, an investment strategy Disney California Adventure, Anaheim, California...
invested or through a Dividend Reinvestment Plan (DRIP). Dollarcostaveraging: The dollarcostaveraging strategy is aimed at reducing the risk of incurring...
full-time employees in their local currency and in US Dollar. The chart below reflects the average (mean) wage as reported by various data providers. The...
allocation Buy and hold Constant proportion portfolio insurance Dollarcostaveraging Merton's portfolio problem extremely optimistic, for illustration...
represented as dollars/megawatt hour (wholesale). The calculations also assist governments in making decisions regarding energy policy. On average the levelized...
in dollars, and the marginal cost is the slope of the total cost, the rate at which it increases with output. Marginal cost is different from average cost...
responsibility and average investment, with the high responsibility condition averaging $12.97 million and the low condition averaging $9.43 million. Similar...
Games since 1960 is on average $5.2 billion (USD) and for the Winter Games $393.1 million dollars. The highest recorded total cost was the 2014 Sochi Winter...
frequently than is necessary, in order to generate commission fees. Dollarcostaveraging is a form of product churn under certain conditions. In this strategy...
1000 US dollars in New York and the same goods cost 6000 HK dollars in Hong Kong, the PPP exchange rate would be 6 HK dollars for every 1 US dollar. The...
surrender values, especially at late duration, can cause a "reverse dollarcostaveraging" effect that results in higher costs of insurance charges. Proper...
Cost of living is the cost of maintaining a certain standard of living. Changes in the cost of living over time can be operationalized in a cost-of-living...
The levelized cost of electricity (LCOE) is a measure of the average net present cost of electricity generation for a generator over its lifetime. It...
numbers are in US dollars. All numbers are in US dollars. Jonathan V. Last Natalist policy Only child Child care Child support Childfree Cost of living Demographic...
Global Information