Quick explainer on why dollar-cost averaging beats trying to time the market for most retail investors. DCA = investing the same fixed amount on a regular schedule (e.g. $200 every month into $VOO or VTI), regardless of price. Over 20+ years of S&P 500 data, lump-sum investing technically wins ~66% of the time when you have cash up front, but DCA wins on the dimension that actually matters for behavioural consistency: it removes the "should I buy now or wait?" decision that causes most people to sit on cash for months. Three reasons it works: 1. You buy more shares when prices drop and fewer when they rise — automatic mean reversion. 2. You build the habit. Wealth compounds with time in the market, not timing. 3. It eliminates the regret cycle. Bought $AAPL the day before earnings and it dropped 8%? Doesn't matter — next month's purchase is at the lower price. Common mistake: stopping DCA during downturns. That's exactly when it works hardest. The 2020 covid crash and 2022 bear market were the best buying months of the decade for consistent investors. Not financial advice — just math.
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