The idea in one sentence
Invest the same fixed amount every month, no matter what the market is doing. That's it.
What actually happens to your money
Here's a real example. You invest €50 every month for 6 months. The market moves up and down — completely normal. Watch what happens:
When the price dropped in Feb–Mar, your €50 bought more shares automatically. Those extra shares are the ones that paid off when the market recovered.
The market only went from €10 → €12 — that's 20%. But you made 45.8%. Why? Because the months when the price crashed, you were quietly accumulating extra shares at a discount.
DCA vs trying to time the market
"I'll wait for the right moment"
"I invest €100 on the 1st, always"
Studies consistently show that even professional fund managers fail to beat a simple monthly DCA strategy over the long term. The market rewards patience, not cleverness.
One important thing to know
DCA works best with diversified funds — ones that own hundreds of companies at once (like a global index fund). If you DCA into a single company and it goes bust, you still lose everything. Diversification is what makes DCA safe.
It's also a long game. DCA over 2 years is fine. Over 20 years, it's life-changing.
You put in €24,000 over 20 years. The market added another €28,000 on top.