Share trading advice with Motion Trader

 When should you invest in shares?

When is the right time to invest in shares? When the market is falling, when it's rising, or just before? Everyone has their own opinion on which timing is right and wrong. I've been investing for over several years and have always promoted long-term investments in the stock market, but like everything else in life, there are cycles. The world switched from paper to digital money, and we are entering a phase where trade deals will make or break us.

Waiting for the right time to invest in shares can be a confusing process. There are so many ways to make money from shares, but sometimes it can seem too hard when you're not sure when is the right time to invest? Let's read on.

Wait for the best time

Hence, it is not always a good idea to invest as soon as you can. You may want to wait for the market to drop further than your buying price and then buy shares at a good price. This way, you will make larger gains while your neighbors are cashing out at low prices.

When you are beginning your quest into the world of financial markets, one of the first things you learn is that you will be rewarded with better returns if you invest at a time when prices are down. However, you better get share trading advice from Motion Trader.

Invest early 

So, you're doing your first stock market investment? Good. This is the best time to start investing early. Compounding interest is best explained by this example: Imagine a savings account where you have $100,000 and get 8% interest per year. After 10 years, 1 deposit per year would be worth $900,000.

Woman in White Long Sleeve Shirt Holding White Printer Paper

Starting early may help you earn greater gains as your investment's value can grow from the interest. Compound interest is said to be more powerful than any other force.

Regular investment

To beat the stock market, you should try and invest in shares regularly to reap consistent benefits. I know first-hand how much analysis goes into deciding on shares to invest in, and it isn't something that I would recommend you do yourself unless you have a lot of time on your hands. The best way for most people to get an investment return is by investing in a managed fund, which will spread your money across a range of shares.

Investing in an amount of 1000 or 500 can be a great choice to get accustomed to the way things work in the market.

Long term or short-term plans 

As a share investor, you can choose from an array of different investment plans. People usually have a short-term as well as long-term wealth creation scheme. A share market investment could be done either short-term or long-term. A short-term investment is considered to be for a period of one year or less. On the other hand, long-term investment is associated with a minimum of one year to six years.

No comments