A lot have been written about “How to Start and Right Time to Investing” but is there any such right time? Lets see –
First and foremost, no one can time the market with 100% accuracy. It is very difficult to do it as numerous Micro and Macro factors drives the market.
If your question is – “when is the right time to invest” or “when is the right time to sell your investments in the stock market?” – The answer will remain the same. And the answer is no one knows the exact answer to this question.
However, we can give you an approach that will help you decide when and how to start investing in the stock market and other instruments of Capital market .
But, before we jump into the approach, let us understand a few basics of the stock market.
- Stocks are a type of investment like Fixed Deposit (FD), real estate and gold.
- Through stocks, you invest in different businesses and every business is unpredictable.
- Investing in the stock market is not about buying one or two stocks. It is about creating a portfolio of 10 – 20 stocks in 5 – 6 different sectors.
- Knowing a different kind of risk of investing in the stock market is a good idea. If you know the risks, you can manage them as well, but it is not easy as you think.
- India is very young when it comes to doing real and stable business. So, the best is yet to come. Start exploring the opportunities here.
- We get Learn every subject in our childhood and in college as well, but not Investments and what happens is we remains with only few traditional investment options that is FDs and Bank Savings which does not even beat inflation rate and even if they do it is not enough. So there are many such points but let’s the answer to the real question remains the same. No one can time the market. No one can confidently answer “when is the right time to invest in stock market” but this does not mean it is impossible, it requires lots of study of various economic factors which is very challenging for an individual to study without any support.
But you can follow below points if you want to start with –
- Learn to how to invest properly with proper understanding and be confident.
- Decide how much percentage of your total savings you would want to invest? Ideal money is the right option to start with which cannot bother you even if you lose it.
- Decide upon the frequency of your investments. Monthly, Quarterly or once in a year.
- And now let’s conclude and see what you can lose or learn –
- The best part is when you think of investing you think of saving. And when you start saving you learn spending it wisely, so this will raise your maturity level as far as managing your finances are concerned. And there comes the quote which say’s “Money Makes Money”.
- When you will start thinking when to start investing you will come across and learn through blogs like this which is directly or indirectly building yourself to a matured person among very rare who just ignores this. There are many real life examples to understand that saving will not build your wealth it is investing which will get you new money and thereby creates your wealth.
The right time to sell your investment is the time when you have another best investment option.
And at the end you don’t have anything to lose if your starting studying as this would add up to your knowledge which no one can take from you.