Calculate your average cost per share from regular fixed investments.
DCA removes the need to time the market. By investing a fixed dollar amount regularly, you automatically buy more shares when prices are low and fewer when prices are high. This lowers your average cost per share over time compared to lump-sum buying at random points.
DCA is most effective during volatile or declining markets and for long-term investors who cannot time entries precisely. It also removes emotional decision-making from the investment process.