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DCA
trading

Dollar-Cost Averaging

Buying a fixed dollar amount of an asset at fixed intervals regardless of price. Eliminates the timing decision and reduces emotional trading. Mathematically slightly lower expected return than lump-sum in trending-up markets (~65-70% of historical periods) but better behavioural outcome — investors who DCA hold through drawdowns while lump-sum-then-panic-sell is a common failure mode.

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