InsiderFlow › Glossary › What is dollar cost averaging (DCA)?
DCA means investing in installments: a fixed amount every month, whatever the market does.
Investing $200 a month instead of $24,000 at once removes the timing problem: you buy more shares when prices fall and fewer when they rise, averaging your entry price. Above all, it turns investing into an automatic habit.
DCA isn't mathematically superior to lump-sum investing (which statistically wins, because markets rise more often than they fall), but it's psychologically far more sustainable: no regret about "getting in at the wrong time".
On InsiderFlow these concepts come alive on real data: what big funds and insiders are buying, explained every day.
If you already have the capital, investing it at once statistically wins; if you save month by month, DCA is the natural choice.
It softens them during declines, but doesn't remove risk: you still need a long horizon.