Doing the Work Personally or Paying Others Dollar-Cost Averaging Investors During a Recession

Dollar Cost Averaging

Dollar cost averaging reduces risk and lowers the difference between the average stock price and the current market value. The drawback to the dollar cost averaging strategy is it will not eliminate the possibility of a loss if the average price does not move fast enough. In fact, if an investor were to pick a stock that was on its way down and continued investing in regular intervals as advised by the dollar cost averaging strategy, the losses could add up rapidly.