Predicting a right time to invest money in the stock market is a very tough job. Nobody can predict the bottom and base price of shares in the bear market. In a weak market greed and fear factors plays a lead role simultaneously among the traders and investors.
Intraday traders never believes in the long term holdings shares. They like short term gains with a marginal profit. For them we can see a high volumes trading with a volatility in the stock price. Intraday trading can give a high returns if all went right on the other hand it can wiped off all the gains at one go if it went wrong picking intraday stocks..
However an investors always prefer to build portfolio buying a large cap shares at discounted price during the weak market. Few weak hearted retail investors frequently miss chance to invest on quality stocks in expect more downfall to come in near time.
A live example of recent times during the stock market crash all due to Corona Virus on March 2020. Lots of retail investors might have not participated on the 33% upside rally seen last month on April 2020. I guess out of 100 investors, 4 to 5% might have shown courage to buy shares for the long term basis. And the rest retailers keep watching the market in hope for downfall.
Though it is very difficult to decide a best time to invest in the sock market. But one have to take a wise initiatives during the negative falling market. As per the great all time investor- Warren Buffet buy when other sell- be greedy on panic market and sell when other buy- panic on greed market.
Now the fact is whether it is wise to invest on shares at current market price after seeing a huge short term rally. Or one should wait for correction in the market to be seen at any point of time. Profit booking is expected to see around Nifty Index 10000 which has been rallied from 7500 levels. If we calculate more than 33% gains from its 52 weeks low. As per the market experts Nifty Futures can retouch its 52 weeks low once again, before it start rise to create a new 52 weeks High.
Well during this hype period, there is a plenty opportunities to buy a beaten small cap and midcap shares which is still available at mouth watering price. In my next articles I would suggest few Small Cap and Midcap Stocks to buy.
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