The Best Month to Buy Stocks
September 28, 2020
By Rahul Iyer
There is no doubt about the great potential that lies in investing in stocks. Your success in investing in the stock market all comes down to making the right decisions. Some have taken an unfortunate stance that it is not wise to invest in stocks because they or someone close to them have lost money in the stock market. In many cases, these individuals invested without proper knowledge and guidance. There are certain things that you must know before investing. One popular inquiry of investors is which month is best for buying stocks.
Barry D. Moore from Liberated Stock Trader has assessed stock data over the past two decades. His investigation has revealed that the best month to purchase stocks is April. He also discovered that October and November are months where an upward movement tends to happen in the stock market. In his research, he found that September is a month where stocks typically see losses by almost 1%. This would mean that you should buy stocks in September to benefit from the increase in October and November. Certainly, this must be viewed through the lens of your investing strategy.
According to Investopedia, the summer months usually see strong returns. They also agree that October is an incredible month for the stock market. This further establishes the point that September might be the best period to invest. Another period highlighted by Investopedia where there will be growth in the stock market is in January, at the turn of the new year. Investors tend to viciously return to the market at the beginning of the new year which leads to an increase in prices. Considering this, December is also a great month to do some investing. DayTradingz.com also views January as a period that typically features some upward movement in the value of stocks.
While it is important to know the best points in the year to invest, it is not all that you should rely on when it comes to investing. The most important aspect of investing is proper research and analysis. You want to place your money in the shares of companies that provide genuine value and are sustainable over the long term. A company must show signs that it will be around in the future before you can count it as a great investment option.
As you invest in stocks, do not get nervous when you see the value of shares fall. The best time to invest in a company that has a great track record is when its value dips. This is similar to shopping when stores are offering discounts. You are getting a valuable item for much less than it originally costs. Take this same approach when purchasing stocks.