Thursday, June 16, 2016

Best time to buy shares

The market has been falling for the last few days, so do I buy shares now or wait for the market to fall? Serious money can be made if we buy when the markets are done. Take any example from history. But to make that type of money, you need to change your perspective from short term to long term, but the best thing to do would be to start with SIP and keep putting in small amounts on the day the market falls. This would be a rewarding strategy, if you have a goal which is minimum 3 to 5 years away. You can start becoming happy, when the markets go up. Remember investing in a rising market can make you happy in the short run, but investing in a falling market could make you wealthy in the long run.

If you have seen history, a falling market lasts for about a year and then there would be a listless market for around 5 years. But after that the markets just rise and that is the reason, I said, invest in a falling market and you could make money in the long run. So do not stop your SIP’s when the market is down, buy stocks instead of playing in derivatives, buy stocks after research only and buy from different sectors. Keep some money aside in liquid funds, so that if the market takes time to recover, you do not dip into the investment, instead, you could use the money from the liquid fund. Even if you do not need money for emergencies, it is better to keep it aside. After 5 years if you see the market still down, you could use this money to buy more shares.
Saying all the above investment horizon is the key, you need to look at a minimum period of 5 years from the time the markets start falling. But if you are looking at a period of less than that, do not go for shares.

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