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What is dollar cost averaging? What is the benefit?

April 26, 2017averaging benefit COST dollar

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What is dollar cost averaging? What is the benefit?

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Dollar cost averaging is a technique designed to reduce market risk through the systematic purchase of securities at predetermined intervals and set amounts. Your dollars will buy more shares when prices are low and fewer when prices are high, by investing smaller amounts over a longer period of time you are insulated against changes in market price making your average cost less volatile.