Occasions To Buy Stocks
(INVEST WHEN OTHERS ARE WALKING OUT)
In the Enigmatic field of stock market there is one question that exist in the Portfolio of every small Investor’s Mind That
"What is the best time to invest in the stock market"
In the era of financial market, we can't follow the rule "If you are searching for the right time it’s now”, Any investor in this world cannot rely on this statement,
If he does most probably, he would pay a big price for his mistake and in financial markets we name price as "LOSS".
"Best and the effective time for investors to buy stocks in the stock market is that time when they get the stocks of valuable companies at a Horse Trade Price or at Bargain price".
So let’s look at some Best occasions when you can make investments in the stock markets.
1) During any Technical Panic within the company.
Whenever there is a technical conundrum or any factor that goes wrong within the company, it tends to affect the operation cycle and permeates every aspect of company’s operations.
As the Operation cycle of the company is affected the profits and the future cash flows of the companies would going to decline.
Hence it will affect the stock price of that company because the intrinsic value of stock would be low,
hence the stock price of that company would Decline and can start trading at the good discount price.
For ex- You must be aware about the case that has happened with Nestle in the year 2019, basically it was about its product Maggie. Actually the lead content was discovered by the team of CFTRI (central food technological research Institute).
And because of this severe glitch the Production of Maggie was halted for 1 month in UP. Due to this enigmatic factor the share price of Maggie went down by 25% and in meanwhile it was started trading at Rs10,000.
And this Problem of lead was occurred only just because of small Trouble that they were having with their water Plant. And As Nestle ran out of this Technical trouble the stock price of company made a great turnaround and reach to it's crescendo at Rs17,000.
So if you would have bought the stock during that occasion today you would have be in the profit of approximately 60-65% on your in investments.
2) During the Short-Term financial panic
Another great time to buy stocks is when there is a short term micro-economic fallout in the domestic level as well as at international level.
Investing in this great time does not mean you invest in unknown or junk stocks, Do Invest in good the fundamental companies and
do your own thorough market research and prepare the list of the stocks that you want to invest in.
For ex In the beginning of the financial year 2019 Govt of India imposed the High tax rates on the corporate companies and the people having the high net worth.
So, this pernicious scenario impacted the Indian economy so much and the FPIs and FIIs had taken out their investments from the companies.
And all the Great stocks were trading at the discount and bargained price. For example The stock of reliance which was trading at..... before the crisis and i went down to the lowest of...
and as this crisis was overcome by our govt in 4-6 months this reliance stock made a Marvellous Turnaround and reached to its Highest crescendo at.....,
So, if you would have bought this share during that time, today you were having a profitable speculative gift from this stock.
3) During the period of world crisis.
This is one of the great and wonderful time, when you can park your money to get the great speculative Returns on your investments in near
about 2-5 years for sure or you can hold your investments for the long term for the Astounding Returns.
When there is a crisis in the world you get the stocks at the bargain price, as all the stock markets in every country turns to come into
the devastating conundrum that is called "Bear Market “and All the stocks are traded on the exchanges in Red complexion.
Because there is a Macroeconomic fall-out and other extraneous factors during this period that have grievous impact on the economy of every country.
During the phase of world crisis, you have to search and invest at the time when the world crisis is about to end.
Because you get the stocks of Blue-chip companies at a discount of 30-40% approx. and of other good companies also at a bargain price.
Example - You already know, because it is going on right now {outbreak of corona virus} ,
You yourself can go and check out the stock market conditions of any country and you can easily able to make a conclusion to buy the stocks or not.
{BEST OCASSION TO BUY THE STOCKS IN THE STOCK MARKET IN YEAR 2020 IS NOW BETWEEN THE DISTRESS OF COVID-19}
These were some of the best and valuable occasions when you can enter into the stock markets and earn great returns on your investments in future.
But you have to do your own market research, company analysis and SWORT analysis and after making all your conclusions then only you have to take the final decision to make investments.
So "FINDING THE EFFECTIVE AND GREAT OCCASION TO INVEST IN VALUABLE COMPANIES AT A HORSE TRADE PRICE" is an Imperative component of the Value Investing.
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