A fuller guide to this term is on the way. In the meantime, the related terms below explain the ideas around it.
Related MoneyPedia terms
- Dollar-Cost AveragingInvesting a fixed amount at regular intervals so you buy more shares when prices are low and fewer when high.
- Buy and HoldA strategy of purchasing investments and keeping them for years, riding out short-term ups and downs.
- Time HorizonHow long you plan to keep money invested before you need it, which shapes how much risk makes sense.
- VolatilityHow sharply and often an investment's price swings up and down over a given period.
- Market TimingTrying to buy and sell based on predicting market moves, a strategy that is difficult to get right consistently.
- PortfolioThe full collection of investments you own, such as stocks, bonds, and funds held across your accounts.
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Plain-English education — not personalized legal, tax, or investment advice.