Finance
Timing the Market VS Time in the Market
February 21, 2022
There are still many investors who believe in waiting for the right time to enter the market. These investors usually wait too long and end up not buying a good stock before it rises sharply.
Timing the market sometimes leads to temporary losses, because it is hard to really time the market. These temporary losses lead to permanent losses when the investor decides to exit.
Warren Buffett picks a good stock, and pours in a large sum into it. But we don’t have his wealth so what’s the next best strategy?
We do it through Dollar Cost Averaging. When we pick a good investment, we invest in a regular interval, prolonging our time in the market. This has 2 clear advantages:
1. It brings down the dollar cost of each unit of investment we buy
2. We do not miss out on a good investment
Our ADR Group consultants are well-versed in investments. If you are interested in investing, let us know and we shall find you a good investment.
