'Dollar Cost Averaging'
Wake Up Money for Thursday, March 26, 2009
Updated: Thursday, 26 Mar 2009, 11:03 AM CDT
Published : Thursday, 26 Mar 2009, 11:03 AM CDT
James Shelton, Chief Investment Officer of Kanaly Trust
"Dollar cost averaging" is a way to invest in the ever-changing stock market without worrying about losing big.
James Shelton, Chief Investment Officer of Kanaly Trust, explains that "dollar cost averaging" involves the following:
- fixed amount at regular intervals, regardless of price
- when prices are low, more shares are purchased
- reduces risk of making large investment at high price
- removes emotion from investment
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