Whether it is a young investor or an experienced investor, this question is an evergreen one in every one's mind!
If the market is up, mindset suggests it is not a good time to enter the market. And if the market is down, it suggests that the market has to find its bottom yet! But what is the best way to invest and make money in the stocks? It is clear that no investor wants to loose his money. And it also a fact that no investor does always get positive return in the stock market.
So it is always a bewildering state when to invest in the market. Whether you are a new investor or an experienced investor, be patient with the market. New investors, always wait for the big falls like one happened recently. Make your proposed investment money into ten parts. Where you think it is a good point of entry, you invest your 10 per cent of investment. If the market falls again, do not panic and wait for some more fall. There you invest another part of the amount. Go on investing in the same way. You could find your investment growing like a hybrid plant when the recovery process starts in the market and it is a very good investment strategy which never fails. The great investors like Warren Buffet have made money and became billianaires in this way only.
For experienced or existing investors, the suggestion is to wait for long term, if you are stranded in the stocks at a very high price. You need to watch out the peformance of the company always. If the company is fundamentally sound, your patience will be rewarded with handsome returns in the long term ie., one to two years.
When any one wants to invest in the stocks, they must do their homework in scrutinizing the fundamentals of the company. One must understand the sector of the stock, earnings of the company, promoter's goodwill, qualifications and experience, future of the relative sector as well as company, financials of the company, dividend history of the company, so that one will not loose money even during the sudden shocking shakes of the market.
Stocks are a good asset class, with which one need to play a safe game and the returns are always decent. And you should not be greedy in making money with stocks. And also never be revengeful on the stocks, which makes you obsessed with turns you a gambler!
Let us learn some more fundamentals in near future next time!