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http://en.wikipedia.org/wiki/Dollar_cost_averaging

I don't have a lot of cash on hand, so when I talk about buying when the market is down I am fine thinking in terms of the next 5 years. I am cutting costs and increasing my rate of investment not dumping a lot of money into the market at the same time.

PS: If you get a large chunk of money it's best to get into the market over the course of 1-3 years vs going really aggressive the day someone hands you all that cash. You might miss out on a little interest but your odds of buying at a peak are greatly reduced.



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