Many beginner investors wonder how to know when to buy and when to sell. But the truth is – you probably shouldn’t be trying to time the market.
If you’re looking to invest, not day-trade, you want to hold your investments for long periods of time. Of course, it’s great to buy cheap to try and maximise returns, but in reality, you’re probably wasting time that could be spent building returns when you speculate about timing. Trying to day-trade (buying stocks to sell very soon after), leads to losses in over 90% of cases!
If you invest in a Theme today, if historic trends continue, your investment will grow in value over the years. Waiting for it to be slightly cheaper isn’t going to have a big impact on your returns.
It’s better to just dive in and get started rather than trying to time the market. In the words of Warren Buffet:
“Invest, don’t speculate”
- Warren Buffet