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Article: DOLLAR-COST AVERAGING IS A TECHNIQUE MANY INVESTORS USE
- Article from:
- Evansville Courier & Press (2007-Current)
- Article date:
- November 10, 2002
- Author:
CopyrightCopyright 2002 Evansville Courier & Press. Provided by ProQuest LLC. (Hide copyright information)
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The stock market is like the weather. You may not like it, but
there's not much you can do.
A smart investor, however, knows how to make the market weather
work in his favor, even during those ugly winters such as the one
we've seen in stocks for the last two-and-a-half years.
A good way to turn a foul wind to your advantage is through dollar-
cost averaging. To dollar-cost average, all you do is make regular
investments of the same amount, regardless of what the market does.
Dollar-cost averaging virtually assures that you will buy more
shares of an investment when its price is low than when it's high,
and that is a good way to make money.
Here's an example. You invest $100 a month in stock ...