Dollar-cost averaging is investing a set amount on a regular schedule rather than all at once. When prices are low your fixed amount buys more shares; when high, fewer. This smooths your average purchase price and removes the pressure of timing the market.
Investing a lump sum immediately tends to beat averaging in on average, because markets rise more often than they fall. But averaging in reduces the risk of a bad first day and can keep nervous investors committed.
Related terms: FIRE · Standard Deduction