What is a stock average calculator?

A stock average calculator gives you an easy way to calculate the average cost per share for every stock in your portfolio. You can also use the calculator to decide how many shares you have to buy when averaging down or up in a particular stock. Unlike many trading platforms, you can see your average cost per share without owning stock shares.

Should you buy a stock with dollar-cost averaging?

However, the success of that large purchase relies on timing the market correctly, and investors are notoriously terrible at predicting short-term movement of a stock or the market. If a stock does move lower in the near term, dollar-cost averaging means you should come out way ahead of a lump-sum purchase if the stock moves back up.

What is dollar-cost averaging?

Dollar-cost averaging is a strategy that can make it easier to deal with uncertain markets by making purchases automatic. It also supports an investor's effort to invest regularly. Dollar-cost averaging involves investing the same amount of money in a target security at regular intervals over a certain period of time, regardless of price.

Should you buy ABCD stock with dollar-cost averaging?

With dollar-cost averaging, you actually have an overall gain at $40 per share of ABCD stock, below where you first started buying the stock. Because you own more shares than in a lump-sum purchase, your investment grows more quickly as the stock’s price goes up, with your total profit at an $80 sale price more than doubled.