What is The Right Time and Price to Buy Stocks

Many investors to stock market are often confused as to when to buy stocks and at what price. The share market is falling and the rates of shares have fallen. Is this the right time to buy? Or, the stock market is touching new heights. Share prices are rising and many investors are making profit. Is this the right time to buy stocks?

Well, the simple rule is that not all stocks are worth buying in a rising or falling market.

There are some basic fundamentals to understand which shares need attention and are worth buying.

When to Buy Stocks
  1. Most investors will invest their money in shares with the hope that the revenue and earning of the company will grow and they will make profit. This is not true with all stocks. In a rising or falling market, pay attention to stocks that are doing well. Monitor the stocks constantly and when the stock misses an earnings report or its revenue doesn't grow fast enough, try to buy the stock. This way you are buying the stock at a lower P/E level and the value of the stock is much better.
  2. Focus on market leaders. These companies dominate their niche and grow bigger.
  3. Focus on companies that are showing consistent earning and growth and increasing rates every year.
  4. Focus on companies that are showing more average revenue than their competitors.
  5. Focus on companies with strong top management.
  6. Focus on sectors that have high and long-term growth plans and invest for long-term.
A stock with all the above advantages can be expensive but it is worth buying. Cheap stocks will not have all these advantages. Invest your money with a long-term view. Nobody gets richer quickly. Share trading and stock market business is not a “Get Rich Quick” business. It demands patience. If you have limited budget, buy good stocks even if they cost more. Buying more cheap stocks is not going to make you rich. Your good quality stocks will grow with time.

When to Invest in Stock Market | Right Time to Invest in Shares or Mutual Fund 

Resources and References: