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Dollar-cost averaging

Buy the same amount every month. The market does the rest.

The idea

Trying to buy at the perfect moment is a losing game — nobody can predict it. Dollar-cost averaging (DCA) skips the guessing: you invest the same amount on a regular schedule no matter what the price is. When prices are low your money buys more shares; when they're high it buys fewer. Boring, automatic, and it beats most people who try to time the market. 🪜

Words to know

Dollar-cost averaging (DCA): Investing the same amount on a set schedule, no matter the price, so you never have to guess the right day.
Time in the market: How long you stay invested — it matters more than picking the perfect moment.
Buy the dip: Waiting to invest until prices drop — risky because the drop might never come and you miss the growth.
Lump sum: A big pile of money invested all at once, instead of a little at a time.

Try it — no account needed

In the full lesson

1Play with the numbers

Vine has 107 lessons like this one, each written three ways so a 7-year-old and a 17-year-old both get a version that fits.

Practice with real prices

Real market data, pretend money. Learn how investing actually works without risking a cent.

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