Compounding occurs when you add your investment earnings or savings account interest to your original investment, forming a larger foundation upon which future earnings may accumulate.
Dollar cost averaging, also known as a constant dollar plan, is an investing technique that can help reduce market risk.
Hedging helps limit risk. Even if you believe you know how an investment is going to perform, market movements are generally unpredictable. As a result, some investors hedge to help counter the instability of the markets.
Leverage can help increase your financial power because you spend only a small portion of your own money to make an investment of much greater value.