Dollar cost averaging
“A mind stretched to a new idea never goes back to its original dimensions.” – Oliver Wendell Holmes
Would you like to know a foolproof way to make money in all markets? It’s called dollar cost averaging and involves investing a fixed sum every month into the same investment without worrying about which way the market is travelling. History has shown that the market has never failed to rise above its previous high point after a low and dollar cost averaging enables you to buy shares cheap when the market is down. I recommend you only use it for quality share trusts as your money is then spread over a wide range of companies. It would be a disaster to keep pouring money into companies like HIH or OneTel that eventually went broke.