Dollarcost averaging can smooth out market volatility from "summary" of The Little Book of Bull Moves in Bear Markets by Peter D. Schiff
Dollar-cost averaging is a technique that can help investors navigate the choppy waters of the stock market. By consistently investing a fixed amount of money at regular intervals, regardless of market conditions, investors can take advantage of market volatility rather than falling victim to it. When stock prices are high, the fixed amount of money buys fewer shares, and when prices are low, it buys more shares. This means that over time, investors end up buying more shares at lower prices and fewer shares at higher prices. The result is a lower average cost per share than if the investor ...
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