4 Ways to Dollar Cost Average on a Limited Budget

4 Ways to Dollar Cost Average on a Limited Budget

For those unfamiliar with dollar cost averaging, the investing strategy aims to reduce variance when buying (or less commonly selling) a security. It involves buying shares of a security in intervals over time rather than buying the full batch at once. EXAMPLE: You want to buy 50 shares of XYZ and the share price today (Day 1) is $10.00. If you were to execute this trade in full today, it would cost you $500.00. In this example, let’s assume on Day 5, the price of the stock falls to $9.00;…