When to Invest in Stock Market

by Nikesh | Last Updated On September 27, 2022

Understand When to Invest in Stock Market. When is the best time to invest in stock market in india.

Understand When to Invest in Stock Market. When is the best time to invest in stock market in india. Golden Rules for Beginners.

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When to Invest in Stock Market

As a human nature, most people start buying shares in stock market when the market rises and they start selling in panic when market falls. This is a completely wrong perception.

No smart investor (such as Warren Buffett) in the world would do that. Many new investors fail to read the rally in stock market and they miss the opportunity to buy or sell shares. They enter the stock market at the wrong time and end up buying stocks at higher rates.

Hence, it is very important in this business to follow the marker rally and invest at the right time at the right price.

Understand:

When to Buy or Sell Shares in Stock Market

Buy low and Sell high is the business mantra and golden rule of stock market. Smart investors will always buy on bad news when the share prices fall down and they will sell shares with good news when the prices rise.

This is how all investors must think in order to earn profit from Stock Market in India. Even though all investors want to buy at lower rates and sell at higher rates to make profit but most of them miss out opportunities or get panicked. There are some tried, tested and proven techniques to select good undervalued stocks. Investors must follow these techniques and make profit.

Don’t buy or sell stocks in panic. Don’t go with the crowd. Use you own brain and follow the market news. If the fundamentals and growth chart of a company is good, there is no need to panic on bad news.

Good companies will always grow, even though there is some short-term impact of bad market news. You need to go against the crowd. Buy good shares when everyone is selling. Make sure you do proper Fundamental Analysis of a Company before investing.

Check:

FAQs: Buy or Sell Stocks

Is it a Good Idea to Buy and Sell Stocks?

Yes, it is Good Idea to Buy and Sell Stocks. Emerging and Developing Countries like the Indian Economy will keep growing for the next several Years. Investors must cash upon this opportunity. Investment in stocks is also a great way to defend inflation.

When Should You Sell or Buy Stocks?

Buy Stocks When:

There is Market Crash or Correction;
Undervalue Stocks with Good Growth Potential;
The company shows growth of about 20% to 25% in last 3 years and last 3 quarters;
Leading mutual funds are investing;
Leading and trending sectors such as Textile Stocks

Sell Stocks When:

Other opportunities can earn a greater return;
Stock is plunging;
Your expectation is not met;
Your stock has made new highs;
Earning of a company is not improving over 6 to 9 months.

When Should you Cash out Stocks?

You should cash out your stocks when:

Your investment goal is met (OR Not Met);
Company Acquisition;
You need the money;
You need to Reshuffle your Investment Portfolio;
There is Better Investment Options for High Return

Is it Buy or Sell Market?

You can understand if it a Buy or Sell Market, if you understand When to Buy or Sell Stocks.

Conclusion

Stock Market is all about Proper Analysis. Don’t Panic with Bad News and don’t be too happy with Good News. Have Patience. Indian Economy is one of the Fastest Growing Economies in the World.

Income and Expenditure of Middle Class Indians is Increasing. Analise Companies and Stocks that Produce and Sell Products for the Middle Class and Invest in such Stocks.

I hope you liked this Post. Please SHARE with Others. Thanks!

Is it a Good Idea to Buy and Sell Stocks?

When Should You Sell or Buy Stocks?

When Should you Cash out Stocks?

Is it Buy or Sell Market?

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