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Time: An Important Factor In Investment

17 Dec, 2021

Time: An Important Factor In Investment

What does market timing have to do with trading? Should you start investing at a young age? 'Time' is an important subject to learn when it comes to online trading for beginners.

Online Trading For Beginners

Nearly 55% of the US population invests in stocks. This is high compared to the 1% of India's population who do. Source.

There are several reasons behind this. As far as youngsters are concerned - lack of knowledge about investing online and market timing. And as people complain - lack of information available about online trading for beginners, is one of the main concerns. Due to this a lower percentage of Indians understand the potential of stock markets. Most people consider stocks as pure risk. This is where India falls back as we only trust safe investments like FD's and gold. Although as a beginner you should know that missing out investing in stocks is like missing out on a slice of life.

Trading Online Early

If having more money is your long term or retirement goal, investing in the stock market is one way to get there. As an online trader and a beginner, you must first gain financial intelligence by learning about how the market works as much as you can... As early as you can. Anyone with an interest can learn. As a beginner you should also consider seeking knowledge about the share market and understanding the art of 'market timing' in investment as well.

The importance of time in investing...

The Power Of Online Trading At A Young Age:

Warren Buffett first bought stock at age 11.

Like learning any other skill set, it's best to begin online trading young. Mistakes will happen. And there can be consequences. But you are young. You have the flexibility of time. You have time to take a risk and recover from that risk thus increasing your chances of success.

Risk and failure was thought of as a bad thing in school. But those quotes floating on the internet about failure being the stepping stones to success are actually true. And you can experience this is real life when you start investing as a beginner in online trade.

Lesson #1: More time = More mistakes = More learning = More success.

That was one way to look at time. Now let's understand 'timing'.

Learning The Art Of Market Timing:

Look at the chart of any stock or index. What do you see? You will eventually understand that there is a pattern involved. Just like we are in the winter stage of the seasonal cycle, everything else in life also goes through cycles. Knowing which stage of the cycle we are in, tells us what to expect next. Market timing is the same. You can plan your entry timing and exit timing. Understanding of long term market cycles take time. But will benefit you in the long run.

The art of market timing is not as easy as it seems when it comes to online trading for beginners. Investors have forever been trying to predict the next change in the market. Artificial Intelligence has also not perfected patterns yet. But one thing's for sure, lack of predictability is a challenge left to overcome.

Global market crashes have taken place before. The Asian financial crisis in 1997, the US housing bubble in 2007 and 2008. But the lesson has been learned.

Lesson #2: It is important and necessary to time the market.

Market Timing In Modern Investing

Modern investing is about taking a step back from the buy and hold mind-set, adding technical principles. These principles are what help you with market timing, position management and early profit taking.

Contrary to what beginners feel, market timing and investing have a lot to do with each other. Theories are simple, while execution is the actual learning and the real deal. When it comes to executing in the beginning as an online trader, it becomes very difficult to separate emotions from logical decision-making. But you'll get over it.

Online Trading Platform For Beginners

If you are looking for an online trading site for beginners, you can easily opt for the Fastest demat account opening. It comes with free brokerage for the first month.

As you now know - time is an important factor in investments. So start now with Sharepa The Best Discount Broker in India

In any investment the aim is to reach a goal, and not the speed at which one reaches it.

Happy beginnings!

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