“By buying when prices are high and low, the average cost of your purchases lands in the middle, so whatever you purchase at high prices is less detrimental to the portfolio.”
“Many people are afraid to buy when the market falls, but dollar-cost averaging takes the thought and emotion out of it and forces you to buy when prices are low, which is what every investor wants,” Denier added. “By buying when prices are high and low, the average cost of your purchases lands in the middle, so whatever you purchase at high prices is less detrimental to the portfolio.”