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Why investing the same amount every month beats timing the market

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Summary

Dollar-cost averaging (DCA) means putting in the same amount every month regardless of the price. When prices are low you automatically buy more units; when they're high you buy fewer. Over time this smooths out volatility and removes the need to predict market movements, which professional fund managers consistently fail to do.

Key takeaway

Set up a standing order and forget it. The boring strategy wins.

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Read: How DCA works

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