Dollar-Cost Averaging

Dollar-cost averaging (DCA) in prediction markets means building a position gradually rather than buying all at once. Instead of committing your full allocation immediately, split it into smaller tranches and buy over days or weeks. This reduces the risk of entering at a temporarily inflated price.

DCA is especially useful for longer-dated markets where prices fluctuate before resolution. Set a target position size and a buying schedule, then execute regardless of short-term price movements. This removes emotional decision-making and ensures you get an average entry price rather than potentially the worst price.

Combine with a clear thesis about the likely outcome..