What is the right time to invest in the stock market?

A lot has been written and said about timing the market.

And, I am also repeating the same here in this answer. No one can time the market. It is almost impossible to time the market.

Whether you ask — “when is the right time to invest” or “when is the right time to sell your investments in the stock market?” — A truthful answer will remain the same. And the answer is no one knows the exact answer to this question.

However, I can give you an approach that will help you decide when and how to start investing in the stock market.

But, before we jump into the approach, let us understand a few basics of the stock market.

1. Stocks are a type of investment. Like FD, real estate and gold.
2. Through stocks, you invest in different businesses. And every business is unpredictable.
3. Investing in the stock market is not about buying one or two stocks. It is about creating a portfolio of 8–15 stocks in 6–8 different sectors.
4. Knowing a different kind of risk of investing in the stock market is a good idea. If you know the risks, you can manage them as well.
5. Cheating, frauds, and malpractices are part of human nature even before society existed. So, the stock market will have few as well. So, beware of them.
6. It is always a good idea to invest in yourself first before investing in other businesses.
7. India is just 28 yrs old country when it comes to doing real business. I take 1991–1992 as the time frame when corporate India actually got freedom to do business in real sense. So, the best is yet to come. Start exploring the opportunities here.
8. We get taught every subject in our childhood and in college as well, but not Investments. Your first investment in the stock market should be the investment of your time to educate yourself.

These basic points can go endless and I may lose track. :-)

The answer to the real question remains the same. No one can time the market. No one can confidently answer “when is the right time to invest in stock market”

But, you can follow a few pieces of advice as well.

Learn to invest properly with confidence.

1. Decide how much percentage of your total savings you would want to invest? (20–30% of your saving is a good idea)
2. Decide upon the frequency of your investments. Monthly, Quarterly or once a year. ( Best approach would be to do it monthly)
3. Go slow. Very very slow. If you want to stay here for the long term. So, slow. Learn, experience and then increase.
4. Stay away from gambling (Intraday trading) and tip sellers.

Now again, this list of advice can become endless as well.

Let’s get on the answer to the real question:-

The day you start earning, you should start saving. And the day, you start saving, you need to invest the saving wisely. Stock market is a place where you can invest as well. And this is the only right time to invest in the stock market.

And, the day you need money. For your self, your kids, your family, it is the right time to get out of the stock market. The only time you have to sell your investment from the stock market is the time when you need money.

Idea was to tell you the basics, give you a few advice and also tell you that the stock market is just like another asset. Like your real estate, gold or FD.

When is the right time to buy a house — when you need it? Right? But when do u sell them — never, unless you have an emergency or you want to buy another house? The case is the same with FD and gold investment.

The day we will start considering investing in stocks is similar to gold, real estate or FD. No one will look for an answer about timing the stock market.