As an investor, hasn’t this question crossed your mind? The answer is a three-letter word – NOW. Especially if you are a long-term investor. Which is why we say, time in the market is more critical than timing the market. 

ANS: Its Always the right time for long-term investors to invest 

For those with a long-term horizon, the best time to invest is as soon as possible. If you have enough capital to invest, consistent investing allows compounding. Yes, a beaten-down market offers opportunities to buy quality stocks at lower prices, but it’s not the only time to invest. This is why it’s crucial not to wait for the “perfect” market conditions.

WHY?

1. The power of averaging in the stock market

Investing when prices are low seems ideal, but waiting for the perfect moment can be a losing strategy. The stock market is a game of averaging, where consistent investing outweighs timing. By regularly investing, regardless of market conditions, you benefit from the power of averaging. Over a 3-5 year period, returns are based on the average price, not just the highs and lows. So, focus on consistency and you will reap your rewards. 

2. The importance of quantity over price in stock investing

When you invest, you look at the price of a share, but what truly matters is the quantity you hold. The number of shares you own directly impacts your growth potential. When prices drop, it presents an opportunity to increase your holdings. Buying more shares at lower prices not only reduces your average cost per share but also amplifies your potential gains when the market recovers. So when prices dip, prioritize increasing your quantity. This way, you will take advantage of the market fluctuations to build a stronger position.

Let us understand this with an example. Suppose you have been buying shares for six consecutive years when the market was giving you an average of 20%. Now suppose the market suddenly falls 50%. What will happen? Because you have been investing consistently and your investment has been compounding, even if the market 50% from a high, it would be your average price only after correction. 

3. In Investments Investing Early is Key and Not Investing on Lower Prices

Start Fast and End Fast. while investing at lower prices can boost returns, it’s more important to invest early and consistently. If you have a goal of Rs 4 crore for retirement, you can start investing at age 25 or 40. If you start at age 25, you’ll need to invest Rs 6,000 per month until you’re 60, which is a total of Rs 25.2 lakh. If you start at age 40, you’ll need to invest Rs 40,000 per month, which is a total of Rs 96 lakh.

We at ABJ Finstock advise our clients to buy systematically and consistently as per the flow of their revenues, not as per the market movement. When you get an opportunity to invest, and the cost is manageable, buy equities and buy a higher quantity. 

In conclusion, The stock market is a game of averaging, and the long-term trend is your ally. By avoiding the temptation to time the market, you can achieve solid returns and grow your wealth over time.

So all set to start your investment journey? Get the right stock market investment advice and never look back. We are here to support and grow your wealth. Schedule a call with ABJ Finstocks today!ABJ Finstocks will help in money management and also provide the best multibagger stocks advisory service. Subscribe our service package to get best value pick stocks calls, penny stocks advisory service.