I’m sure you have heard this before, that you should only invest your money in stocks and shares when the price is right.
The problem is no one fully explains exactly what that means.
So, let me explain in a little more detail about how this works in practice. And provided you follow the steps laid out in the money trainers training you will be aware that you need to secure any investments in cash first, and then allocate this cash across a range of investments – when the time is right.
The problem being, when is the time right?
We know that the markets fluctuate on a daily basis and very often you’ll find the markets on a roll upwards over a period of weeks and then dip slightly, the market never continues to go up it always levels out, consolidates and/or often falls slightly.
Falls in any market; of any share price of one or two percent are very common, falls of 3% or 4% on less common but do happen on a regular basis.
Larger falls in the price of the market happen less frequently but nonetheless arrive with a reasonable amount of regularity.
Therefore it makes perfect sense for you to invest when the markets are lower than they were yesterday rather than the highs of today, quite simply we know full well, and can state with some certainty that the price in the market today of a given share or stock index will different tomorrow, or the day after, or stay the same.
Provided you have cash in your portfolio you have no need to invest today and you can time your investment to suit you, if we use a different analogy.
Let’s say you need to purchase oranges, you don’t need them immediately but it would be nice to have some in the house at some point in the future you can – simply wait until the price of oranges falls.
You have no need to invest today or tomorrow or the next day but simply wait for the market dips and let the market come to you rather than you chasing the market. Provided you allocate your funds correctly you can simply invest when the market suits you, or at least when the price suits you.
This kind of market timing can improve your investment returns by 10 or 20% per year dependent on market conditions.
Just one simple method can improve your returns exponentially. Sure it’s a bit fiddly, but making money it’s always been fiddly.
when you’re ready to get some more information on this don’t forget to subscribe the box is on the right-hand side of this post, or drop me an email via the contact form