Dollar-Cost Averaging

What is Dollar-Cost Averaging (DCA)?

Dollar-Cost Averaging (DCA) is a strategy often used in long-term investing but can be adapted for scalping and intraday trading. It involves dividing your total intended trade amount into smaller portions and executing these portions at different price points over your trading period.

Short-term DCA:

• Initial Entry: Start by purchasing a smaller portion of your total position.

• Adjustments: As the market moves, buy additional portions based on your trading thesis.

Key Benefits:

• Risk Mitigation: Spread entries reduce exposure to price fluctuations, helping mitigate market volatility risk.

• Strategic Flexibility: Staging entries allows you to respond to market conditions and adjust your strategy if the market moves against your initial position.

For new traders, disciplined execution of this method is crucial, ensuring each entry aligns with a well-considered trading plan and comprehensive risk management strategy.

Let's take a look at how Sniper Entry Pro utilizes DCAing and where your average entry winds up once both levels are hit: