Identifying What Is The Best Time to Investing in Shares
Identifying What Is The Best Time to Investing in Shares

What Is the Right Time to Invest in Stocks

The stock market allows for traders to generate revenue from the shares of publicly held companies. Investors in such shares have the potential to score high profits provided they make informed buy, sell and / or trade decisions. By creating an online broking account, an individual has the potential to yield high profits provided they trade the right stocks. Since the price of stocks is variable, identifying the right time to invest in them can be most beneficial.

Investing in shares -

Stocks should be invested in when their prices are low such that they can be purchased more plentifully. While lowly priced stocks can drop some more, it is better to invest in them rather than stocks with high prices which might not rise further than the time of purchase. The latter can experience a price drop which would lead to a loss for those looking to sell said shares. In comparison, shares bought at a low price have a greater probability of yielding profits.

1. Invest in good stocks -

Undervalued stocks are those which are available for sale on the market at a price presumed to be less than the investment’s true intrinsic value. When and if a stock becomes undervalued, traders can benefit from its future profits. Examining a company’s future prospects for growth and profits can help reveal whether their stock is overvalued or undervalued. Investors can also consider the price to sales or price to cash flow metrics in order to make such determinations.

2. Research is Important -

A good time for investors to invest in the stock market is once they have done sufficient spade work pertaining to it and have adequately researched a stock. A company’s annual report can provide information pertaining to its financial health, and its future plans for growth. This information is ordinarily easily accessible on a publicly listed company’s website.

3. Best time of day to buy stocks -

The Indian stock market operates from 9:30AM to 3:15PM. Intraday traders who buy and sell stocks within a given day most often consider 9:30AM to 10:30AM an ideal time to trade. The stock market takes 15 minutes to react to the events which transpired since it last closed. Traders should give it a chance to respond prior to making buy, hold, or sell decisions which else could inadvertently be rash. The volatility of the stock market and volume of traded stocks tends to drop within an hour and a half of its opening. Moreover, for new investors, continued exposure to the stock market and its associated charts and graphs on a given day can cause mental fatigue and confusion. This in turn can lead to one of the poor decisions as to why intraday traders often lose money in stock markets. There exists a belief that traders should ideally buy stocks on Monday as their prices are said to be at their lowest and sell stocks on Friday since they are at their highest. If this actually held true, the stock market wouldn’t be able to operate normally due to a distorted demand and supply paradigm. Hence, there is no “best trading time of the day”, but keeping an eye out for undervalued stocks or certain price movements can definitely help.

Conclusion -

By opening a broking account online, investors can trade stocks from the comfort of their home. They can also gain a better understanding of prevailing market conditions and what to look out for.

 

Ready to invest with us?

Share your Mobile Number with us and get started

  • +91|
scrollToTop