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Pound-cost averaging

Buying shares on a regular basis to smooth out the ups and downs in the share price.

Buying shares on a regular basis to smooth out the ups and downs in the share price.

Pound-cost averaging can be a useful technique if you’re worried the stock market might fall in the near future. You invest over time instead of all in one go, so you end up buying more shares when the price is low and fewer when the price is high. Over time, this can help to smooth out some of the ups and downs in the share price.

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