Markets can go up and down over the short-term and it’s almost impossible to pick the market top or bottom (even for professionals).
So when is a good time to invest in shares?
Instead of trying to time your entry point, dollar-cost averaging is a strategy to invest gradually over a few days, weeks or months. This helps reduce the impact of short term moves in the market because you invest at an ‘average’ price over a period of time.
Dollar cost averaging can help smooth your initial investment returns by reducing the risk that you’ve invested everything just before a dip in the market. By buying over a period of time you get to take advantage of any market dips and buy at the lower prices if markets fall.
See how dollar cost averaging works
Many Stockspot clients have set-up weekly or monthly direct transfers from their day-to-day bank accounts into their Stockspot accounts so they can take advantage of market dips and peaks with our automated service.
To make it easier for our clients to use a ‘dollar cost averaging’ strategy we don’t charge any brokerage or commissions on regular investments.
Grow your savings the smart way
Stockspot is Australia’s largest digital investment adviser. We can help you build and manage a personalised portfolio tailored to your financial situation and your goals. It’s professional investment advice without the high costs of seeing a human adviser.
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