When it Comes to Investing, Consistency Pays Off

While the market does loops across the screen, a little demonstration of dollar-cost averaging may be in order. The rule: Put in a specific amount on a regular basis regardless of the market's gyrations.

Investment gurus at American Century say it takes the emotion out of investing and gives your investments the time to grow. You buy some shares at a low price, some for more, and over time you average the cost of all the shares you buy.

When you try to time the markets, you may find yourself sitting tight when prices are going up, even though they may go higher still. And if you sell during downswings, fearing losses, chances are you'll lose anyway.

With dollar-cost averaging, you put market swings to work for you, the American Century statisticians say -- especially by buying when the market is down. Whether a rising or falling market, however, you build your holdings on a regular basis -- and that leads to riches.

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Read our detailed feature Pointers for a Perfect Portfolio.