How To

How to Maximize Your Investments with Dollar Cost Averaging

By Julie Mayfield, eHow Member Rating

Rate: (6 Ratings)

Buy low, sell high. It's the rule of investing in the stock market. You can accomplish buying low and selling high when you invest using Dollar Cost Averaging. Read on to learn how.

Difficulty: Easy

Instructions

Step 1

Choose a set amount of money that you want to invest on a regular basis (i.e. monthly).
Step 2

Choose an investment in which to invest the money in step one.
Step 3

Each month, place the amount of money you chose into the investment that you chose, regardless of the price of the investment share at the point in time.
Step 4

In months when the share price is high, your set amount of money will automatically purchase fewer shares of the investment than in months when the share price is low. This helps accomplish the buy low part of the buy low/sell high strategy.