Dollar-Cost Averaging · Lump Sum Comparison · Accumulation Chart
| Benefit | Explanation |
|---|---|
| Removes Emotion | Automatic buys regardless of price action |
| Averages Down | Buy more units when prices are low |
| Reduces Timing Risk | No need to pick the "perfect" entry |
| Builds Discipline | Consistent habit over speculation |
| Factor | DCA | Lump Sum |
|---|---|---|
| Timing Risk | Low | High |
| In Bull Market | Lower returns | Higher returns |
| In Bear Market | Averages down | Full drawdown |
| Emotional Ease | High | Stressful |
| Capital Needed | Small amounts | Large upfront |
⚠️ This simulation uses synthetic price data for illustration. Real market conditions are unpredictable. DCA does not guarantee profits or protect against losses. This is not financial advice — consult a qualified financial advisor before investing.