| Often quoted rule for deciding when to ideally invest is – “Buy when others are fearful and Sell when others are greedy”. It is the most valuable rule to remember. |
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| When to Invest will also depend on your investing style or philosophy. If you are a long term investor, above rule holds but if you are trader, you will be both on long side as well as on short side depending upon trading opportunities available. |
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| Whatever your style, you should stick to only one and do not keep changing your style. You should not convert your long term investments to trading and do not convert your trading to long term investments. |
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| You should take the help of an advisor in fixing your methodology of decision making depending on your risk profile, funds availability and outlook in the market. Your methodology should be well thought out and should not change in a turbulent market condition. In fact turbulent, how you will behave in extreme market conditions must be considered before you start investing. Otherwise such conditions can cause fear and panic which lead you to make mistakes. |