Online Trading Online Mutual Funds Back Office (EQ & DP) Global Investing Login Wealth Management Self Care

CALL US

+91 22 48934000

Contact Details Locate Branch
BLOG IMG-Types of Insurance Why Insurance Is A Must 1200 × 400pxy

More than often, people willing to invest in stocks will wonder what the right time to invest in them is and how to invest in the stock market?

Given how volatile the stock market can be, when investing in stocks is there even a right time to invest in stocks and what are the best stocks to invest in India?

There’s likely no definite answer to this question because of how many variables there are to consider, but this post will tackle some of those variables to at least give you a clearer picture.

Investing in stocks: Who is it for?

Investing your money is a time-tested way of generating income from your money, allowing you to save for a later date. Investing as early as possible is one of the ways to ensure that your returns pile up over time, but choosing the right investment platform can be a tricky thing to do, especially when there’s no guarantee that the returns will be big.

Choosing what to invest in is usually dependent on your goals. With that in mind, investing in stocks is usually best for those who are ready to take the risks that come with it.

Stocks are relatively riskier compared to fixed income investment options, but they often tend to give bigger returns. Hence, while anyone can invest in stocks, it is often recommended to those who wish for large returns quickly, while also being resilient to risks.

When investing in stocks, if you have doubts, and most likely you will, you should get in touch with a full-service broker who can help you with your investments and ensure your future is safeguarded.

How to Invest in the Stock Market: Are There Any Personal Factors?

There can be external factors that determine the time for investing in stocks is right, but there are also personal factors to consider.

  • Do you understand how stocks work?
  • Do you know what all is required for you to invest?
  • Do you have sufficient funds that you can invest?
  • How to invest in the stock market?
  • What are the best stocks to invest in India?

These are some of the things to consider when preparing yourself and knowing if you’re ready to invest. Even basic knowledge of how stocks work and the various factors that determine the cost of stocks is crucial knowledge to have and can protect you from making risky investments.

Furthermore, having some financial stability is recommended. Stocks can often be a risky investment and you might end up losing money instead of making more. Risk tolerance is another factor to consider in this case.

When Is the Best Time to Buy (or Sell) Stocks?

Considering the question is if there is a right time to buy stocks, the answer could be a literal one. In this case, considering the time of day can be good practice, although this is applicable more for people who are intraday traders – as in, traders who buy and sell stocks on the same trading day.

The stock market operates between 9:00 AM and 3:30 PM, which is why it is often suggested to consider trading between 9:30 and 10:30 AM. There are a few different reasons for that. Regular inter and intraday traders know how to manipulate stock prices throughout the day by buying and selling but can leave beginner traders flustered and confused. There’s also the volatility and volume in which stocks are traded, which drops after the first 90 minutes. Additionally, the stock market also takes about 15 minutes to respond to the previous day’s events. Hence, waiting out the first 15-30 minutes is advisable.

You might also have heard about Monday being the best day of the week to buy stocks in, although it is not favourable advice. Usually, the price of stocks can be affected by global events, hence they vary drastically across the week and there is no one particular day that’s better than others when it comes to buying stocks.

What About Stock Value?

Supply and demand are usually what determine the value of stocks. An undervalued stock is one whose value is projected to grow in the future. An overvalued stock is one whose value can sink in the future. It can be hard to figure out how much a stock is worth, and you have to guess based on how the company will do in the future.

This is one of the reasons why knowledge of how stocks and the stock market work is necessary. Furthermore, research is important to learn the value of a particular stock before investing in it. There are many factors that go into determining whether a stock is being undervalued or overvalued.

Techniques to determine a stock’s value usually involve techniques like discounted cash flow analysis and comparing a stock’s price-to-earnings multiple with other stocks.

In Conclusion

The above text lists some of the factors that can go into determining when to invest in stocks. To summarize, there are multiple factors to consider and there is no one right time for investing in stocks.

Closely analyzing the market and assessing your investor profile is a good practice. If you want to master the stock market, then you have to put in the work and learn the ins and outs. Thankfully, nowadays there are many ways online to learn the details of how the stock market works.

Related Posts

BLOG

Dec 05 . Mon

Given the way the Indian economy is growing, there are a lot of opportunities to ma...

638dc43feaf4f.1670235199.Top Investment Sectors For 2023 Blog Image

BLOG

Dec 11 . Sun

This blog addresses all the key points one should remember before...

6395f2b62706f.1670771382.How To Apply For IPO Everything You Need To Know About IPOs

BLOG

Dec 26 . Mon

This blog talks about opportunities for NRIs to invest in India a...

63a9a1b530460.1672061365.Best Investment Options for NRIs in India

BLOG

Jan 01 . Sun

Are you looking for a high rate of return on your short-term inve...

63b13d64c50f2.1672559972.blog-banner

attention-icon Attention Investors

1) Stock Brokers can accept securities as margin from clients only by way of pledge in the depository system w.e.f. September 1, 2020. 2) Update your mobile number & email Id with your stock broker/depository participant and receive OTP directly from depository on your email id and/or mobile number to create pledge. 3) Pay 20% upfront margin of the transaction value to trade in cash market segment.  4)Investors may please refer to the Exchange's Frequently Asked Questions (FAQs) issued vide circular reference NSE/INSP/45191 dated July 31, 2020 and NSE/INSP/45534 dated August 31, 2020 and other guidelines issued from time to time in this regard.5) Check your Securities /MF/ Bonds in the consolidated account statement issued by NSDL/CDSL every month. 6) For Stock Broking transaction : Prevent unauthorised transactions in your account 7) KYC is one time exercise while dealing in securities markets - once KYC is done through a SEBI registered intermediary (Broker, DP, Mutual Fund etc.), you need not undergo the same process again when you approach another intermediary  8) Update/ confirm your mobile number/email ID with us OR If you wish to change/ modify the current Mobile No. & E-mail ID, you are requested to provide MODIFICATION FORM duly filled in and signed OR If you do not want to provide Mobile No. & E-mail ID, you are requested to send DECLARATION FORM duly filled and signed.  9) Receive information of your transactions directly from exchange on your mobile/email at the end of the day...Issued in the interest of Investors 10) No need to issue cheques by investors while subscribing to IPO. Just write the bank account number and sign in the application form to authorise your bank to make payment in case of allotment. No worries for refund as the money remain in investor's account. 11)As per SEBI Circular MIRSD/ SE /Cir-19/2009 dated December 3, 2009 Client transaction account shall be required to do the actual settlement of funds and securities at least once in a Quarter or month.