When to buy stocks ?

The most often discussed question is when to buy stocks. I would say that there is nothing like good or bad times and every day and every minute will represent some opportunity or the other to buy stocks. 

If you are waiting for that particular good moment to buy a stock then there are definitely some things that you need to understand. 

If this is the first time you are buying the stock ever in a stock market then I would suggest buy a very safe stock like the P&G or the Unilever and then try to use the stock market direction for some investment strategies to be tried on. I have suggested these as these are defensive stocks by and large and should help you not lose too much money. That said there are several other stocks that can be defensive and you can use these to buy into the stock market and learn something about the stock market 

Use mutual funds

You can also start investing indirectly into the stock market by having the investment made into the reputed mutual funds. 

Momentum investing

A lot of people will buy stocks when the markets are rising and the bulls are in full swing however that may nor my not be good time to buy based on your time frame for investment. Most people who are momentum investors have a specific target of gains in mind and they will get off the stock the moment they reach the target. 

This is a good way to make money and also enter into the market and make some money however you should be careful about the overall trend and if the trend goes negative you will need to exit the stock and that will mean that you have to have a stop loss strategy. 

Buy low sell high

You can use this strategy to enter into the stock market and buy the stocks when the market is down and that will mean when the market is at historic lows like it did in the year 2008 when the mortgage crisis happened. People who had cash invested win good healthy banks stocks. Then when the market recovers you can easily sell in the process making incredible gains. 

Value investing

There is a school of thought that some companies may not be bad but the prices are low because of some temporary issues or the general broader market outlook. Scores of investors keep looking at stocks that are value buys. They buy these stocks when low and keep on holding on to these stocks for a long term that is five years or more. If you have not heard about Warren Buffet then I would suggest reading about Warren Buffett to get to know how to value invest. 

Read and read more

Read a lot of financial websites like the MSN money Central or the expert advice by several others to get to know what is happening to the broader market. 

Do your own thing

Lastly the answer to the question about when to buy stocks will come form you only as you start trading and will start defining your own trading strategy. Read and then apply using own judgment.

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