Dollar cost averaging is an investment strategy that involves investing a fixed amount of money at regular intervals, regardless of the market conditions. The idea is to spread out the investment over a longer period of time, and potentially reduce the impact of market volatility on your portfolio. Many investors are often intimidated by the ups and downs of the stock market, but dollar cost averaging can help alleviate some of those fears. Instead of trying to time the market, investors using this strategy invest a set amount of money into their portfolio on a regular basis, regardless of whether the market is up or down. This strategy allows investors to take advantage of the power of compounding, as they are buying more shares when prices are low and fewer shares when prices are high. O