Markets are way too unpredictable.It is always tough to forecast where the market will go in future.You never know when the market starts the bull run or the bearish move.Bull markets are when the stock prices tend to move higher and continue moving higher.People tend to miss the bull runs on the bourses while waiting for reasonable prices or a major correction to buy.Few are the lucky ones who would have bought the bottom of the market.And when the bull run starts,it becomes too difficult to enter the market at higher levels.Bourses go on fire and stocks start skyrocketing.Then the feeling of left out of this market rally is too disturbing.Only left are the regrets of not entering the markets earlier.
But it is not that you have missed the bus and now you shall not be able to get the chance to enter the market and make a handsome return or profit now.Markets always give the chance to invest and everybody gets this chance.Everyone can take the full advantage of the bull run.Yes,even after the bull run has started.
The question arises how you enter the market when the stock prices are soaring.Would you go with your money and place a buy order?You can definitely do that.But the probability of market correction always stays there and you would never want to get stuck at higher prices and see your investment turning into losses.Of course,the advantage of bull market is there which has the tendency of turning even your wrong decisions into right one and market trend may pull up your stock above your buying price.But that would reduce your profit potential and you would never want to happen that.
Although moves of a market rally are too tempting to jump into the market before another big move comes in,you are always required to be in your full control.Never take hasty decisions to buy the stocks.Little patience on your part ensures you entering the market at a better price.Just let the markets do whatever they want to do.
Identify some blue-chip stocks with strong fundamentals and good management.Never identify the stock as cheaper or costlier by looking at their trading price.A stock trading at ₹ 1000 is not necessarily costlier than a stock trading at ₹ 100.The price is determined by the fundamentals of the company.
After you selected the stock you want to buy,start buying it in small amounts regularly,in regular intervals,without bothering the current prices of the stock.Spread your cash you want to invest over a period of time by taking intervals of week,fortnight or month.Select a fixed amount you would invest and any day of a month or week for buying.This is like a systematic investment where you are buying the stock at a prefixed time with prefixed amount without waiting for the market correction.This is a wise step as otherwise the correction you are waiting for may never come.
Spreading your investment over a period of time will lead to buying the stock at different prices,sometimes lower and sometimes higher which will get averaged up finally.The need is keep the consistency with you buying.Never try to time the market or skip the instalment if stock is moving higher on that particular day thinking that you will buy double when the stock falls.In this way you will find that your average buying price remains lower than the current market price if the bull run continues.You can earn decent profits out of this bull run over a period of time.Even if for any reason,the stock markets change the trend and start correcting,you shall not incur bigger losses and may in fact be able to protect your investment even with a small profit.
Finally,we can say that you can definitely enjoy the bull run by choosing quality stocks,keep buying regularly in equal instalments and don’t jump to the buying the stock in haste fearing that you are left behind and will not get the chance to enter the market.