Q: What’s “dollar-cost averaging”?
A: It’s when you buy into an investment over time with set installments. For instance, if you want to invest $4,000 in Dodgeball Supply (ticker: WHAPP) stock, you might buy $1,000 worth of shares every three months for a year. You’d do this regardless of the stock price — for example, buying 20 shares when the price is $50 and 18 shares when it’s $55.
This approach has you buying more shares when the stock slumps and fewer when it’s pricier.
Q: Would you recommend borrowing against my credit card to invest in the stock market?