As a beginner investor, buy what you know.
When you read the amazing stories of millionaires and billionaires who have made it rich investing in the stock market; you’ve got to ask yourself, ‘When is the best time to invest in the stock market?”
Well, some sensible advise we tend to lean towards is, ‘Start investing as soon as you can!’. Warren Buffet was only nine years old when he bought his first stock. Before you go our making your first investment, consider the following advice on when to invest in the stock market.
When the stocks get listed
People are always looking for good deals when it comes to buying products. However, not many investors get excited when share prices go down. Remember, the idea with shares is to buy low sell high.
A herd mentality kicks in when share prices go low. Investors tend to avoid stocks when prices are low. At some point, the stocks will rise again. One has to give these things time.
When the stock hits your Buying Price
Another good time to buy shares is when they hit your buying price. When investing in shares, you need to estimate what your stock is worth.
Estimating the worth of a certain stock makes it easier, for the investor, to see if it is on sale or likely to grow to its projected value. It is better to a range at which you would buy a stock. Establishing a single stock price target is not reasonable.
Can You Patiently Hold A Stock?
If you can patiently hold on to a stock, you are ready to buy it. Understand hat you should not expect your stock to rise anytime soon. It can take years for a stock to grow to its price target range.
One needs to be confident in a stocks ability to grow. If you have that confidence, consider holding the stock for three to five years before selling it.
Do Your Homework
One is ready to buy shares once they have done thorough research on shares and the companies they are considering buying from. Analyse price tags and take advice form newsletters.
Read annual reports of companies you are considering investing in. Read their most recent news announcements and go online to check out their presentations to investors. Great investors do their homework.
You can also find investor information on a companies’ website under the investor dealings page.