When to buy shares? Time in the markets vs timing the markets

How do you know when to buy shares? “The market timer’s success is based on foreseeing the future correctly. The buy-and-hold investor’s success is based on being patient and weathering the storm.” -John C Bogle, Founder of Vanguard Group

There are two camps when it comes to investing: those who believe in timing the markets, and those who don’t.

The camp that believes in timing the markets is always looking for the next hot stock, trying to time when to buy and sell to maximize profits. The other camp, made up of buy-and-hold investors, takes a more long-term approach. They believe that the best way to profit from the markets is to ride out the ups and downs, patiently waiting for their investments to grow.

It’s no secret that timing the markets can be a profitable endeavor. If you can buy low and sell high, you can make a lot of money in the stock market. However, this is easier said than done. Many people try to time the markets, but few are successful. Some struggle with the question of when to buy shares so much that they fail to pull the trigger indefinitely. In this blog post, we will discuss how a good investment plan can outperform by taking advantage of both of these concepts!

What is ‘time in the market’

Time in the markets refers to the amount of time that you are invested in the market. The longer you stay invested, the more likely you are to see positive returns. This is because, over time, the stock market tends to go up regardless of when you invest

What is ‘Timing the market’

Timing the markets refers to buying and selling at specific times to take advantage of short-term price movements. While this can be a profitable strategy, it is very difficult to do successfully. Many people who try to time the markets end up losing money or underperforming the market. This is because it is very difficult to predict short-term movements in the stock market. 

The best of both worlds

So, how can you take advantage of both time in the markets and timing the markets? The answer is simple: by having a good investment plan. A good investment plan will take into account your goals, risk tolerance, and time horizon. It will also include a diversified mix of investments that are designed to perform well in different market conditions. By having a good investment plan, you can take advantage of both time in the markets and timing the markets!

Dollar-cost averaging

Dollar-cost averaging is an investing strategy in which an investor buys a fixed dollar amount of a security at regular intervals, regardless of the price. By buying the security at regular intervals, the investor reduces the effects that sporadic changes, unrelated to the underlying security, might have on the price. This technique is often used when an investor begins investing

If you’re not sure how to create a good investment plan, don’t worry. There are many resources available that can help you. it is recommended to consult with a trusted financial advisor to get started. The important thing is that you take the time to develop a good investment plan. It could be the difference between making money and losing money in the stock market!

Do you have a good investment plan? What has been your experience with timing the markets? Let us know in the comments below!