equity trading tips

It’s Never Too Late to Invest – Even If You Are about to Retire, Start Investing in Equities

Stock Market

Some of the experts believe that this is the right time to invest in the market. However, there is no one reason that will support that you must start investing from today itself. Out of plenty of reasons, some of the best reasons to invest in the market are featured below;

  1. No matter when you start investing in the market, Time is on your side

Investors are usually worried about the timing of their initial stock purchases rather than being worried about purchasing the right stock. This is because, when you start trading or investing in the market at the wrong point then the market’s ups and downs can take you to suffer from big losses. Time is always on your side, no matter when you start investing first. You will notice that over the long haul, the compounding returns of a well-chosen investment will add up nicely, no matter what the market happens to be doing when you buy your first shares.

  1. Do not think about the right time, but think about the right stock.

It is suggested to all the novice traders that rather than fretting about when you should make that first stock purchase, you must think about how long you are planning to keep money in the market. Different investments provide different degrees of risk and return. But all are best suited for a different investing time frame.

  1. No matter whether you invest in bond or stock. Invest is necessary

Generally, you will notice that the bonds offer smaller, more dependable returns for investors with shorter time frames. Longer-term government bonds provide slightly higher returns. Stocks have also been very good to investors. From the year 1926 to 2003, it has been observed that the large-cap stocks have returned well at an average of 10.4% per year. This percentage is much higher than that of bonds.

Interestingly, the range of the returns for stocks is not that much larger than the range for bonds over the same period. Since you have more time to wait out periods of bad returns, the greater risk you can accept.

  1. Know your needs before investing in the market

If you want your returns in the next five years, then you must never invest in the stock-centric mutual funds. Suppose, you are willing to get back money in the next three years, then you must not invest in bonds or mutual funds.

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