Dollar-Cost Averaging – What Is It?

Visual of combination of clock, calendar, and money which are all important components of dollar-cost averaging.

Dollar cost averaging has many different names which include constant dollar plan, unit cost averaging, incremental trading, and cost average effect.  But they all speak to the same strategy.  Simply put, dollar-cost averaging is dividing up the total amount invested across periodic purchases.    The act of dollar-cost averaging was first popularized by Benjamin Graham in his classic investing book, The […]