Wednesday 20 January 2016

Is it the Right time to invest in the Stock Market?

Hi investors & friends,

How are you all doing? In my interaction with various kinds of investors, one of the most common questions I have come across is, "When is the right time to invest in the Stock Market??" Whether the stock market is bullish or bearish, this question always stays in our minds. When the markets rally, we ask this question since we fear the fall of the market. And, when the markets fall, we ask this question since we fear further fall. We are confused at all times. 

We all love to buy at the bottom price and sell at the highest price. Do you think this is practical? You will not find a single person in the world who has consistently timed the market. If someone claims that, he/she is surely lying. Whether, you are a Technical Expert or a Guru in Charts or a so-called Expert who gives targets on television or a blind follower of the above, I want you to gracefully, cautiously and humbly accept and digest the fact that it is foolish to even think that you can time the marketIt is IMPOSSIBLE :-) 

So, what is the realistic approach? What is possible? What can be practically achieved?

Click here for the Basic Fundamentals of Investing in the Stock Market

Firstly, I want you to understand what Investing is. Investing is a lucrative process which needs to be habitually cultivated from the time you begin earning your first income. Please remember that you are investing for yourself and your future. You need to sideline a realistic part of your income every month and save it for your future goals and needs. Invest with a purpose. That's important !!!

From historical data, wise equity investments in solid companies have proven to be major wealth creators in the long term. Yes, not 1 or 2 years of consistent investing, but people who have habitually invested for 5 to 10 years in sound businesses have created crazy amount of wealth. When I say Crazy, I mean it. They have created wealth which can take care of generations and I am not kidding. They are the ones who did not get affected by the small turbulences of the markets, but instead focussed on the business and its prospects. They did not make their decisions based on TV Headlines, Experts, Brokerage Houses, Emotions etc. 

They just followed up the business and that's about it. If the business did well, they kept investing or stayed invested. And when the business consistently started slowing down, they kept their emotions aside and booked out. Click here to see how Warren Buffet approaches the market

In the last month, the markets have fallen globally. We have had geo political crisis in Europe, Slow growth rate in China, Employment problems in multiple parts of the world, Economy slowdown etc. I am still proud to say that India has managed to progress pretty well with these turbulences. With the able leadership at the Centre, things are slowly moving towards the best. 

Personally, I am not surprised that Nifty/Sensex has corrected to this level, given the fact that H1 results were not very good. I had advised a lot of close investors and friends to keep cash in hand and wait. The wait is proving fruitful now. Click here to read about Bloodbath in the Markets

So, when is the right time to invest in the stock market? My dear friends... This might surprise you, but if you are going to invest with a long term horizon, and if you know that the management and employees of your company are doing their best, the RIGHT TIME IS NOW :-)

Yes, you heard it right. Every moment in the Stock Market is an opportunity if you are long. But, you need to do your homework and pick good companies. Believe me, there are tons of them out there. The opportunities get better when markets fall, due to fear, and market prices of good companies also fall without a reason. 

Friends.. What's the bottom line. BE FEARLESS !!! DO NOT TIME THE MARKETS !!!

Pick your companies well and I assure you that you will be rewarded in the long term... Don't bother if you bought a solid company and the market price is falling without a fundamental reason. Many times, our pockets are not deep enough to keep buying when a stock falls without reason. You are not alone. If a stock falls without change in fundamentals, it is bound to come back. Keep a strong mind.. 

Start investing for yourself, my friends.. It's the best gift you can give yourself. Stay long.. Stay blessed !!!

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Please share this post on multiple public platforms so that many more can get benefited and master the art of Investing in the Stock Market !!!

Good luck,
Fundamental Investor


  1. Exactly!!! Every time is the best time for investment in the stock market. If you will hesitate, you will keep on hesitating & won't be able to excel in the market.
    Delta Capital Markets

    1. Absolutely Alex sir.. The problem is that a lot of people end up fence sitting waiting for the right moment.. Yes, timing is critical, but time spent in the market in quality stocks is key.. Let's pick the right stocks and sit tight while the economy continues to flourish in the long run...

  2. Good write up Bro, how to judge new and novel businesses companies like isft would be Multibaggers

    1. Thanks Grays.. I didnt get your question. Is there a typo in the last few words?? Sorry to ask.. Just clarifying...

  3. The point to consider is whether we are still in the bullish market? if this correction a bull market correction as you said it is right time to invest. if we already in a long term bear market it is not he right time to invest. SO how to understand whether we are still in the bull market or not? in my experience the FED rate cycle is the major phenomenon which determine the direction of the market. Every bull market starts when the Fed rate is at the lowest and ends when the rates go above a certain percent. My experience tells me that we not yet reach that point and hence we are still in bull market and this correction is a bull market correction so we can invest now. For a safety we may consider to sell and switch over from stocks to FDs once FED rate reaches 3 to 3.25% levels. This my opinion not necessarily a correct one.

  4. For instance, in "the general hypothesis of funds" there are two meanings of accounts: MLPS

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  7. Sir can you please write a blog on how to do homework and pick good businesses?
    Thank you for imparting financial education ❤️

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