Buying low and selling high is how one maximizes investment returns. But how can I consistently buy low when asset prices change all the time? Haven’t I been taught that trying to time the market is a fool’s errand?
Spoiler alert: There is no secret way of consistently buying low. However, today’s post is about a purchasing technique for long-term investors which can help smooth your costs: Dollar Cost Averaging. For volatile investments this technique can actually lower your average cost over time.