One common question investors ask is, “When is the best time for investing?” Or more specifically “When is the best time to invest safely?” The answer may seem trite, but a good time for safe, profitable investing is almost every week.
True, if the market is crashing you may want to hold off, but even then there is almost always a way to grow your portfolio. Some of the things you can do to feel more confident when you invest are:
- Know your ultimate goal
- Develop an investment strategy
- Know your keys to successful safe investing
- Have ways to diversity
- Use an investment software program
Whether you are managing your retirement accounts, or simply investing to make money for tomorrow, you will find the best opportunities if you write down your goals, and then develop strategies that you can balance with your goals, and the level of risk you are willing to take to obtain your goals.
In turbulent times you may simply want to move your money into more secure funds and conserve your cash until the market starts to climb again. If you are more aggressive investor, you may be willing to put some of your money into a stock, mutual fund, or ETF that is currently bucking the downward trend.
Using a flexible investment software program that you can tailor to develop strategies that fit your personality, your goals, and your objectives, will enable you to find safe investments. This will allow you to manage your retirement accounts and build your future security. Look for software that offers you different ways to analyze the stock market and diversify your investment positions, and to recognize “Market Exit” signals that tell you when to move into safe positions or out of the market altogether.
Part of building your portfolio revolves around being ready to act. This doesn’t mean you have to watch the stock market every hour of every day. Checking your strategies and your investments once a week or even every few weeks for just 20 minutes is normally sufficient. If you do this, you will always be prepared to either move into or out of the markets or to shift your money from a slow moving or declining position to another position that is climbing.
An equally important rule is to resist succumbing to rumors, tips, or someone else’s opinion of what is going to happen or what may be a “good buy”. Sticking with your goals, following the guidelines, and paying attention to the signals you get from your investment software program will lead to increased investing success.
How can you tell if the economy will get better? How do you know when there are good “buy” opportunities in the market and do these good “buy” opportunities always exist?
There are lots of different answers to these questions. Sometimes events cloud the overall picture of the market. There may not be any good investments at a particular moment in time, but being prepared to make an investment when the time is right is just as important as making the investment in the first place.
Some of the most obvious ways to gauge the future of the economy come from the various economic reports that are released every week detailing housing sales, consumer confidence, inflation, etc. Many of these reports are very good indicators and can be very helpful. Unfortunately, the headlines about these reports are usually based on the initial paragraphs that are stating the problem or issue, and not the entire report. Many times a report may sound negative, but in reality as you get into the nitty-gritty of the article or report you will find evidence of the positive aspects.
What it comes down to is that you need to be willing to look past today’s negative news in order to find the true indicators for the future.
Look at the trends in your investment analysis software program so you are prepared to buy when the time is right. Remember, even if you are using investment analysis software, that it doesn’t mean you should only watch a single chart. While you might check out an “equity” chart for your group or the S&P 500 to see what type of signal that particular chart is generating, you also want to check the trends of different groups or sectors of the markets, and then use several different charts along with buy-sell signals to see how all the information correlates and where the data is pointing.
If you are keeping your mind grounded with solid facts you will always find investment opportunities.
Dominick is the designer of the investment program Dynamic Investor Pro, an investment software used by individual investors and professional investment advisors for stocks, ETFs or mutual funds and the author of the book, Invest Safely and Profitably.