3 Times Lump-Sum Investing Beats Dollar-Cost Averaging
When you're worried about stock market volatility, the oft-preached advice is to ignore the market's ups and downs and practice dollar-cost averaging rather than lump-sum investing.
With dollar-cost averaging, you commit to automatically investing a certain amount at regular intervals, such as every week, month or quarter. With lump-sum investing, you'd invest the entire amount at once.
Dollar-cost averaging often reduces your average cost of investing. Yes, sometimes you'll buy at the market's peak, but you'll also invest when stocks are on sale after a market crash.
Source Fool.com