Make use of dollarcost averaging from "summary" of Investing for Dummies by Eric Kevin Tyson
Dollar-cost averaging is a simple and effective strategy that can help you take advantage of market fluctuations without having to obsess over timing the market. The idea behind dollar-cost averaging is to invest a fixed amount of money at regular intervals, regardless of how the market is performing. By doing this, you end up buying more shares when prices are low and fewer shares when prices are high. This strategy helps to smooth out the volatility of the market and reduce the risk of making poor investment decisions based on short-term fluctuations. One of the key benefits of dollar-cost averaging is that it takes the emotion out of investing. Instead of trying to predict market movements and timing your investments accordingly, you simply stick to your predetermined investment schedule. This can help you avoid the pitfalls of trying to time the market, which is notoriously difficult even for seasoned investors. Another advantage of dollar-cost averaging is that it allows you to take advantage of the power of compounding. By consistently investing a fixed amount of money over time, you can benefit from the growth of your investments as well as any dividends or interest that they may generate. This can help you build wealth over the long term without having to constantly monitor your investments or make frequent adjustments to your portfolio.- Dollar-cost averaging is a tried and true investment strategy that can help you grow your wealth over time while minimizing the risks associated with market volatility. By sticking to a regular investment schedule and avoiding the temptation to time the market, you can take advantage of the power of compounding and build a solid financial foundation for the future.
