Member-only story
A s of April 2019, the Gallup poll reported 55% of Americans invest in the stock market. For new investors, I recommend they invest using the dollar cost average method which is not hard to figure out.
Before the Great Recession, 62% of Americans had invested in the stock market. This was from 2001 to 2008. Dollar cost averaging helps a person build wealth in their portfolio while avoiding emotional decisions that come with investing.
What is Dollar Cost Averaging?
Dollar cost averaging is when the investor buys stocks or another investment on a regular interval. For example, the investor buys shares of a stock over a period of time. The investor does not try to time the market but invests consistently every month or over a set period of time.
Trying to time the market for the lowest entry in an investment is not the best idea unless the person is a very seasoned investor. Even these investors can make mistakes and get it wrong.
