⌛Timing the market

Shedding light on when to buy stocks and the concept of buying in the dip.

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Let's accept the fact that the stock market is a volatile investment and even though you put your cent percent dedication into understanding the market, you won't be able to predict the market. Timing the stock market is a herculean task.

When to buy stocks then?

Timing the market is very very difficult. The best time to buy stocks is whenever you find a single extra penny in your wallet. Ride on the momentum instead of timing the market.

DISCIPLINE is the key. Whatever may be the market scenario - a bullish or bearish market - invest, invest, invest.

The only regret that investors have is that they didn't start earlier. So start early as possible.

The only suggestion that I have is - Buy stocks and never get back to Kite to see your portfolio because if you did so, that's when you try to change your portfolio and mess up things. Invest in the market rather than trade in the market.

Buying in the Dip

But wait, some people also suggest buying in the dip? So what's that?

When do you buy a smartphone? When there is a discount or probably in any Great Indian festival sale on Amazon or in the Black Friday sale. Why so? Because we are inclined to buy products at discounts.

Let's apply the same strategy to the equity market. As I mentioned earlier, the stock market is a volatile one. You never knew when the market would crash. But if the market crashes what to do? Get panic and sell all of your holdings? No, never do that rookie mistake.

Instead, that's the best time to buy some more stocks. Remember you buy a smartphone when there is a sale. Likewise, why don't you buy stocks when there is a discount?

But I would recommend not to wait for the dip in the market. Invest whenever you have disposable money in your wallet and also buy some more stocks when the market crashes.