Things to Consider Before Investing in Stocks
Is it possible to time your entry into the stock market?
Published January 14, 2024.
Understanding the stock market calls for meticulous evaluation of multiple factors. For those embarking on this financial journey, a comprehensive knowledge of stock trading for beginners will go a long way. This resource offers invaluable insights to navigate the complexities of the market effectively, including the ever-important timing of your investments.
As a general rule, there is no optimal time to invest in stocks. However, there are several factors to take into account when deciding when you should invest.
Note: Fortrade offers the ability to trade the price changes of instruments with CFDs and NOT to buy/sell ownership of the instrument itself.
This blog post serves as an explanation of the general process of stock trading and is not meant to be considered as advice.
Things to Consider Before Timing Your Investments
Long-Term vs. Short-Term Goals
Short-term potential gains are more challenging to predict and are dependent on being able to monitor trends and notice a sudden shift in share prices in advance, whereas long-term potential could be more stable. However, there are risks to both strategies.
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Market Timing vs. Time in the Market
While some trades rely on market timing and capitalizing on price fluctuations, others are linked to patterns that unfold over time. This differs from an active investing strategy and a “buy-and-hold” passive approach.
Economic and Market Indicators
Investors should stay up-to-date with financial news and earnings reports of companies whose stocks they hold. They hold essential indicators on the right time to invest in a stock or dump the shares.
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