A strategy of investing a fixed amount on a regular schedule without trying to time the market.
You buy more shares when the price is low and fewer when it's high, which has the effect of lowering your average cost.
The Principle and Limits of DCA
DCA (Dollar Cost Averaging) means splitting a fixed amount into regular purchases on a set schedule to spread out your average cost. The goal isn't maximizing return — it's removing the "when should I buy" timing decision entirely. This simulator reproduces DCA and lump-sum performance side by side using real historical data.
Research generally finds that lump-sum investing is mathematically favorable more often in a rising market, but DCA carries a real psychological and risk-management edge during volatile stretches. See a detailed comparison in DCA vs. Lump Sum.