📈DCA
Dragon (DCA) is an investment strategy where an investor divides up the total amount to be invested across periodic purchases of a target asset, aiming to reduce the impact of volatility on the overall purchase. The objectives of DCA include:
Reduce Market Timing Risk:
By investing at regular intervals rather than in a lump sum, DCA minimizes the risk of making a large investment at an inopportune time when the asset's price is high.
Mitigate Emotional Investing:
DCA helps in reducing the influence of emotions on investment decisions. Investors commit to a regular investment schedule, which can help them stay disciplined and avoid making impulsive decisions based on market fluctuations.
Lower Average Purchase Cost:
Over time, DCA can result in a lower average purchase cost for the investment. By buying more shares when prices are low and fewer shares when prices are high, investors can take advantage of market dips.
Promote Regular Investing:
DCA encourages consistent investing habits, making it easier for individuals to commit to a long-term investment plan. This is especially beneficial for investors who may find it challenging to save and invest large sums of money all at once.
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