"Dollar cost averaging" refers to an investment strategy of buying securities in fixed dollar amounts at scheduled intervals, with the aim being to reduce the risk of paying too high a price for a share of stock at any given time. For example, an investor could commit to investing on the first day of each month $1000 in a particular security or mutual fund. Dollar cost averaging is intended to reduce the risk of choosing a wrong time to get into a stock or mutual fund. Despite its advantages, dollar cost averaging does not guarantee a profit and does not protect an investor from losses.