Dollar-cost averaging involves contributing the same amount to your portfolio monthly, buying more when prices are low and less when high. It works well even when markets are at all-time highs, ensuring an average market price over time. This strategy removes emotion from investing, reducing stress and ensuring consistent investment.

Investing during market highs can be challenging, but dollar-cost averaging picks up more shares when markets drop, leading to larger profits when markets recover. While lump-sum investing historically outperforms this strategy, most people don’t have large sums to invest, making dollar-cost averaging a practical and less volatile option for long-term investing.

Read more at Yahoo Finance: How Dollar-Cost Averaging Can Help Your Portfolio Now