When is the Best Time to Buy Stocks?

In the trading world, the main investment moves are buying and selling. Investors and traders choose buying first because it is the initial move that starts the investment process. Of course, the logical next step is selling but that a whole new other discussion.

Buying is generates commissions and fees for brokers.

buying is the act of setting the baseline for whether you are going to profit or not,

buying at the right time at the right price

However, there are numerous cases in which you should buy other than simply gaining the standard returns. The following are circumstances in which it is best to buy your stocks:

1) Dramatic Price Reduction

The main goal of buying is to profit so naturally if a price reduction occur, it is normal to buy quickly. The key is to not be greedy. If you think the rapid price reduction will continue, then you will be taking a risk as sudden price reductions are just that, sudden. And as sudden as it comes, the chances are that it will suddenly bolster as well. Make quick money and find new prospective stocks to profit on.

2) Price Hit

Another good time to buy stocks is when the price is right which means, it is your responsibility to estimate the value of a stock and establish range in which you will buy a stock if it hits the price within the range. Setting  a price target range to increase your chances of profiting. To determine the realistic target range, you must do your research.

3) Unjustified Valuation

Once a stock’s valuation no longer justifies its price, its time to buy. Valuation is assessing the current value of a company’s stock. It’s an imprecise science but its better than no valuation at all. If the price of the stock is no longer justifiable at all, it is likely that the stocks will be a good buy. To determine undervaluation, one of the ways is to estimate the stock’s future prospects.

Basically the best time to buy is when there is gain. And even if there is loss, so long as it serves as a lesson, it is also a gain, experience-wise. Just remember to always be prepared through extensive research, patience, and skill.