6 Answers: Best Time to Start Investing? Market Conditions.

Question

What are the best conditions to start investing in the stock market? In my opinion, the best condition to start investing in the stock market is being informed. This is an important requirement. If you don’t know exactly what you’re doing the risk is that you’re gonna buy at the wrong time and sell at the wrong time.

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Benjamin Morgan 5 months 6 Answers 73 views 0

Answers ( 6 )

  1. You have 2 ways to invest in the stock market:

    indexing or passive investing
    Active

    Indexing removes the risk of betting on the wrong company but it won’t protect you against a market downturn when the market goes down all at once.

    Active you have the additional risk of having to pick your companies. Turns out that passive investing is not so bad at the end of the day. The important thing is always to know what you’re doing, in both cases. The market on average can give you 9–10% per year but you can also lose big in a particular year. And if you get scared, you can find yourself in a difficult position.

  2. The very best time to invest is now. Not tomorrow. Not yesterday [because yesterday is gone] but now. Investing means you are doing it over a long period of time. If you are looking to gamble then almost any time is good as well. BUT true investing means investing broadly and over a long period time. Looking for the ‘best conditions” means you are consider gambling and not investing. Simply put there is NO best condition for investing. Just invest.

    • I understand what you’re saying but the truth is market timing is very important. Buying into stocks right now would not be a good idea…

  3. Read books by John Bogle, Burton Malkiel, Ken Fisher, and Jeremy Siegel. Each one has written thoughtful studies about investing. In Essence, timing and stock selection is less important that simply staying invested over 20–30 years and keeping costs down.

  4. Options are instruments that were basically meant to hedge the existing positions of Shares.

    But today, people have started using it as an instrument of gambling and trading.

    Well, here are few tips for Options Trading

    Do more positional buy in early period of options contracts.
    Do more intraday / short term buy only during the last few days of options contracts as time decay is more
    Options Selling is suggested more in last few days of contract (but with proper heding)
    Options buying is suggested more in first few days of contracts (with proper heding)

  5. Right now the market conditions are certainly not good for investing in the stock market, especially tech stocks!

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