Definition
Investing a fixed amount on a fixed schedule regardless of market conditions. You automatically buy more shares when prices are low and remove timing decisions entirely.
Why it matters
DCA removes the two most expensive investor behaviors: waiting for a better price and stopping during a crash. The schedule, not the forecast, makes the decision.
Example
$300 invested every payday buys 3 shares at $100 and 4 shares at $75. The investor never decides whether it is a good time; the falling market simply hands them more shares per dollar.
Put it into practice
Related terms
This definition is educational, not financial, legal, or tax advice. U.S. rules and limits change; verify time-sensitive details with official sources. See our disclaimer.