Timing is Everything

In order to have to success in the market there are many aspects that need to fall into place and one of these is timing. In this blog post I will answer the question, When is it the right time to invest? Economists from Trendshare Organization have written the article “When is the Right Time to Buy a Stock” on their website explaining the perfect time to invest. The right time to invest is when a stock is on the up and you know you are not overpaying for each share. Invest when a stock is low but won’t be low for very long.

 

Source: http://www.seeds4thesoul.com

This article starts off with two basic principles of knowing when to invest, “To make a reliable profit from investing, you must understand two things well: what a stock is worth and what other people are willing to pay for it.”  

Value of stocks fluctuate all the time but if you catch a rising stock at a low price you are bound to make a buck or two.To do this you have to understand: first how much you are willing to risk in the stock market, next you have to understand what a stock really is worth. Now knowing how much you should pay for a share can be a bit difficult if you aren’t familiar in a certain area of the market, but with little guidance you can learn the value of your stocks very quickly.

Next you need to understand why stocks are rising and if you think it’s the right time to invest. The article brings up the point “In the short term, stocks go up and down for many reasons, only some of them rational. Some companies are scams, but like Enron scams eventually fall apart. Good companies make real money. Solid businesses will succeed and continue to be good companies.” Enron was a company who scammed their way to the top of the technology field but they eventually were found out and went bankrupt in less than a year. Investing is risky and scams are something you always have to watch for. Investing is strategic and you need to be smart, and if you are you can make a big buck very quickly.

Now the question comes up of, when is a stock fluctuating too much? “Stock prices do move because of valuations too.” Many people move their money through the market everyday which leads to all this variation in the market, but “If you never invest, you'll never lose money. You'll also never make money.” The rule of thumb is don’t panic because the market is self correcting.

To wrap everything up, it is important to know what you are investing in, don’t invest in something you aren’t feeling good about because it’s your money and there are scams at every corner. But if you catch a legitimate stock at a low price it can only go up for you, a growing stock will only make you money. Finally, don’t get caught up with fluctuating prices, the market corrects itself because money is shifted thousands of times everyday.

In my next blog post I will answer the question “What type of people are investing.”