what is dollar cost averaging 
investing can be challenging even experienced investors who try to time the market to buy at the most opportune moments can come up short dollar cost averaging is a strategy that can make it easier to deal with uncertain markets by making purchases automatic it also supports an investor s effort to invest regularly dollar cost averaging involves investing the same amount of money in a target security at regular intervals over a certain period of time regardless of price by using dollar cost averaging investors may lower their average cost per share and reduce the impact of volatility on the their portfolios in effect this strategy eliminates the effort required to attempt to time the market to buy at the best prices dollar cost averaging is also known as the constant dollar plan investopedia jiaqi zhou