Investing over Time

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The amount of money does mean that an investor can buy more or less of a financial instrument and therefore, amplify his or her gains or losses. However, making money through investing comes from time. If you could cut back on spending by $100 every month and you invested that $100 every month like clockwork, you will take advantage of times when that financial instrument goes down in value and appreciates, as well as times when it goes up in value and you lose money. However, if you just save all of your $100 and make one big investment, not only are you taking on a lot of risk, but you will have missed out on all those opportunities when you could have made money due to price fluctuations.