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Dollarcost averaging smooths out market fluctuations from "summary" of A Random Walk Down Wall Street by Burton Gordon Malkiel
The idea behind dollar-cost averaging is that if you consistently invest a fixed amount of money at regular intervals, you can take advantage of market fluctuations. By investing a set amount each month, regardless of market conditions, you end up buying more shares when prices are low and fewer shares when prices are high. This approach helps to smooth out the ups and downs of the market because you are not trying to time the market or predict when prices will be at their lowest or highest. Instead, you are steadily accumulating shares over time, regardless of short-term fluctuations in the market. D...
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