The Pros and Cons of Dollar-Cost Averaging
When thinking about investing, one consideration is whether to invest funds all at once or over a period of time. If you choose the latter route, you might be opting for an investment strategy called dollar-cost averaging.
With dollar-cost averaging, you invest your money in equal portions, at regular intervals, regardless of the ups and downs in the market.
Let's say you receive a bonus or have saved up $10,000 to invest. Instead of investing that amount all at once, with dollar-cost averaging you might split that $10,000 into 10 parts and invest $1,000 a month for 10 months.
Source Fool.com
