Lesson 4 of 4 · 3 min read
Dollar-cost averaging
Fixed amount, fixed day — taking the stress out.
What is DCA?
Investing the same amount every month, regardless of the price. Sometimes you buy high, sometimes low — on average you come out fine.
Why it works
You don't have to time the market (which almost no one can). You build a habit and take emotion out of decisions.
Automatically buy more when it falls
With a fixed amount, the same contribution buys you more shares when the price is low, and fewer when it's high. A crash becomes a buying opportunity instead of a panic moment — your average purchase price falls on its own.
In practice
€100/month: at a price of €50 you buy 2 shares, at €25 you buy 4. It's precisely in the dip that you stack up more shares — the ones that recover the hardest when the market bounces back.
Remember this
- DCA = investing the same amount every month, regardless of the price.
- You don't have to time the market — almost no one does that consistently.
- In a dip, the same amount automatically buys you more shares.
- It builds a habit and takes the emotion out of your decisions.
There is a quiz for this lesson
2 questions that check whether it stuck. They live in the app, because a quiz nobody grades teaches nothing.
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