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But financial expert Suze Orman has a solid way to approach the stock market as a new investor.
Heres a look at this piece of advice from Orman andhow new investors can benefit from following it.
Ease Into Investing With Dollar-Cost Averaging
Orman is a big proponent of dollar-cost averaging.
Lets take a look at how it might work.
You may have $1,200 to invest in a given year in aspecific asset class.
This may be particularly helpful if youre investing during a volatile time.
The Many Benefits of This Strategy
So [the investment] gave you diversification.
It gave you a return.
And so, thats why I like dollar-cost averaging.
Yet another benefit of dollar-cost averaging is that youre not trying to time the market.
This means waiting for what you think is the right time to buy or sell an investment.
It can be a tricky strategy to give a shot to implement, particularly if youre a newer investor.
It can be a strategy to help you get started with investing and overcome some fears along the way.
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