I've been hearing a lot about dollar cost averaging as a strategy for investing, especially in volatile markets. I understand the basic concept is to invest a fixed amount of money at regular intervals, regardless of the market's ups and downs. However, I'm curious about how effective this strategy actually is in practice.
- Have any of you used dollar cost averaging, and what has your experience been like?
- Are there particular types of investments or market conditions where this strategy might be more or less effective?
- How do you decide on the interval and amount for investing?
- Finally, how does dollar cost averaging stack up against other strategies like lump-sum investing?
Looking forward to hearing your thoughts and experiences!
