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Keep Investing: Why "Always Be Buying" Works

In the world of investing, there's a smart idea called "Always Be Buying" (ABB). It's all about regularly putting money into your investments, no matter what's happening in the market. But why is this such a good plan for investors?

Well, ABB is like having a steady savings habit for your investments. Instead of trying to guess the perfect time to invest, you keep adding money to your investment accounts on a regular basis. Whether it's a little bit each month or a big chunk whenever you can, the key is to keep at it, even when the market goes up and down.

One big reason why ABB works is something called dollar-cost averaging (DCA). This means you buy more shares when prices are low and fewer shares when prices are high. So, over time, you end up with an average price that smooths out the ups and downs of the market.

Plus, when you keep investing regularly, your money has more time to grow. This is called compounding returns. The money you make on your investments can start making even more money for you, snowballing into bigger returns over time.

Another good thing about ABB is that it helps you stay calm during market ups and downs. Instead of worrying about every little change in the market, you stick to your plan of investing regularly. This helps you avoid making rash decisions based on emotions.

Of course, ABB doesn't mean you should invest without thinking. It's still important to have a diverse mix of investments that match your goals and how much risk you're comfortable with. And it's a good idea to check in on your investments every now and then to make sure they're still right for you.

In the end, ABB is all about building your wealth steadily over time. By making investing a regular habit and staying patient through market ups and downs, you can set yourself up for long-term financial success.