How Dollar-Cost Averaging Works in Turbulent Markets

Benjamin Graham, known as the father of value investing, said, "The investor's chief problem -- and his worst enemy -- is likely to be himself. In the end, how your investments behave is much less important than how you behave." Graham's words point to the importance of keeping a level head no matter what's happening in the market. And dollar-cost averaging (DCA) may be the strategy to help you do just that.

DCA is the practice of investing a set amount at regular intervals, rather than investing a larger amount at one time. Proponents of DCA say the approach minimizes the chances you'll mistime your buy, when share prices are at their peak. The strategy often results in a lower cost-basis, which translates to higher gains.

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Source Fool.com