Dollar cost averaging is an investing technique where an investor buys a fixed dollar amount of an asset at a specified frequency. This is typically done on a dialy, weekly, or monthly basis. Those just starting out in their investing journey don't always have access to a significant amount of money to make a one time purchase. Inflation, budgets, and life can make it difficult for those just starting out. Dollar cost averaging is a great way to get started with your investing journey. Especially since fractional purchases are now available from online brokerages.

There is a popular saying in investing that 'Time in the market beats timing the market'. Dollar cost averaging allows the investor to worry less about trying to time the market, and take advantage of being invested in the market for longer periods of time. Many beginners also have an urge to become day traders, while not thinking about investing for the long term and for their future. They also rarely consider the tax consequences of buying and selling over short periods of time.