Dollar Cost Averaging Junior- The Short Term DCA

If you just started getting into investing in the stock market, you most likely have come across the concept of dollar cost averaging (DCA). DCA is an investment strategy most commonly used by long-term investors. It is the practice of consistently purchasing additional shares of a pre-existing position in one’s portfolio with the same dollar amount at pre-determined intervals of time (weekly, monthly, etc.). The basic idea is that by purchasing shares at a consistent rate (time) with the same dollar value, one can minimize the volatility of a position because it will be…