When Is The Best Time To Buy A Stock?


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The best time to buy a stock is before it increases in value.  This may seem obvious, but it’s the most correct answer.  Buying stocks serves one purpose: making money.  Making money on buying stocks involves timing stock buys to coincide with lower buy-in prices and higher selling prices.  That aside, the best time to buy stock in general has other factors at play such as market conditions, currency trading, and aspects specific to a particular stock.  There is no perfect time of day, hour or date to buy stocks.  Timing stock buys is based on other mitigating factors.  Learning these factors will lead you to the best time to buy stock, and hopefully some healthy returns on your investment.

Bear Markets

Bear markets are typically the bane of most investors.  A bear market when speaking in terms of stock market activity means a market where either falling share prices are prevalent or the market is doing what bears do while hibernating: nothing.  For the investor who is buying stocks however, a bear market, in fact a downright ailing market is the best time to buy stock.  This is for a simple reason: stock values are down and it’s a buyers market.  Just like when the home market is down and subsequently price values fall, so acts the bear market.  Purchasing during this time means you are getting essentially discounted prices.  The prices are low for many factors usually including the economy at its main cause, but the good news is buying stocks during this time can be a bargain.  Buy in when the market is hurting, wait for it to recover and watch your stock investment profits increase exponentially.  If one had invested in the market this past year, 2009 in April and May when the stock market was bottoming out, they would have on average increased their stock wealth nearly 60% in just 8 months.

New Companies

Another excellent time to be buying stocks is when there is a new publicly offering.  When a new company wishes to go public there is a set stock price for their shares before trading actually begins.  Getting in on the bottom floor of the right stock when it hits the market could mean good and fast profits.

Related posts:

  1. What Is A Bear Market?
  2. What Is A Bull Market?
  3. When Is The Best Time To Sell A Stock?
  4. What To Look For When Investing?
  5. Understand Exactly how the Market Works

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