Value Averaging is an investment strategy that focuses on adjusting the amount invested based on the performance of an asset. Instead of investing a fixed amount regularly, investors increase their contributions when prices are low and decrease them when prices are high. This approach aims to buy more shares when they are cheaper and fewer shares when they are more expensive, potentially leading to better long-term returns. The key principle behind Value Averaging is to maintain a predetermined growth path for the investment portfolio. By doing so, investors can take advantage of market fluctuations while minimizing the risk of over-investing during market highs. This disciplined method encourages a systematic approach to investing.