Can you break down the concept of dollar-cost averaging?

Dollar-cost averaging (DCA) is an investment strategy where you invest a fixed amount of money at regular intervals, regardless of the asset’s price. Instead of trying to time the market, you consistently buy shares—sometimes at high prices, sometimes at low. Over time, this averages out the cost per share, potentially reducing the impact of market volatility. For example, investing $200 every month into a mutual fund means you buy more shares when prices are low and fewer when prices are high. DCA helps reduce emotional investing decisions and is especially useful for beginners looking to build wealth gradually over time.