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Take advantage of dollarcost averaging from "summary" of A Random Walk Down Wall Street: The Time-Tested Strategy for Successful Investing (Twelfth Edition) by Burton G. Malkiel
One way to reduce the risk of making an ill-timed investment is to invest a fixed amount of money at regular intervals, regardless of the price of the investment. This strategy, known as dollar-cost averaging, can help smooth out the effects of market fluctuations on your overall investment. By investing a fixed amount of money at regular intervals, you automatically buy more shares when prices are low and fewer shares when prices are high. This can help lower your average cost per share over time, potentially increasing your overall return. Dollar-cost averaging takes the guesswork out of trying to time the market. Instead of worrying about whether prices are going up or down, you simply invest the same amount of money at regular intervals. This disciplined approach can help you avoid making emotional investment decisions based on short-term market movements. While dollar-cost averaging does not guarantee a profit or protect against a loss, it can be an effective way to build wealth over the long term. By consistently investing a fixed amount of money at regular intervals, you can take advantage of market fluctuations and potentially increase your overall return.- Dollar-cost averaging is a simple and effective strategy for reducing the risk of making an ill-timed investment. By investing a fixed amount of money at regular intervals, you can take advantage of market fluctuations and potentially increase your overall return over time.
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