Timing the market vs. Time in the market.

Timing the market vs. Time in the market.

A broad spectrum of experts have consensus on the fact that its very tough to time the market. They say that instead of trying to time the market to buy or sell, always try to stay longer in the market. This basically means, buy good companies shares, come back and see after years. You are very likely to have appreciated your investment substantially.

On a given day, a companies share price can go down 5 % and go up 5%. Even though such movements may not be common, they are not rare. Those who were in the market know this. If you were to buy the said share, how can you possibly know when it would get to the lowest point. You would invariably not catch such a best time to buy it and also to sell it (at its peak price). This is the case with not only you as a beginner but also any expert.

No one knows exactly when a share price will go up or down. Through the background knowledge you have into the market and the factors which affect the market, sometimes, you may be able to make a fairly accurate guess. However the fact remains it is only a guess work and it does not have to be correct.

Easier thing to do is not to look too much into when a price is low and instead make that purchase at a fairly good price according to your assumptions. Base your assumptions on advise appearing on reliable sources, and then wait for longer so that instead of trying to time the market, you are staying invested longer to make a good profit.