Over time you buy more shares when the price is low and less when the price is high.   The Informed Investor's Guide
		How Dollar Cost Averaging Works Think of DCA as a disciplined and consistent approach to investing. When you DCA, you invest a specific dollar amount at regular intervals, usually monthly or quarterly. Because share prices fluctuate and your investment dollars remain constant, at times the price you pay will be higher than your average price, and at other times it will be lower.
		Here's the point to this strategy. When you invest a consistent amount over time, you'll potentially be able to buy more shares when the price is low and less shares when the price is high. In a fluctuating market, this means that over a period of time, your average cost per share may be lower than the average price per share for the same period. Here's a simple example to illustrate how dollar cost averaging works. Let's say you consistently invest $100 each month for three months. The investment you choose initially costs $10 per share. In the first month, this means you can buy 10 shares. Then the next month, the market drops. Bad news? Not necessarily, even though the shares you had previously purchased for $10 are now only worth $8. Remember that you are still making a consistent $100 investment per month. Because the price has dropped, your monthly $100 now buys 12.5 shares.

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