Stock – To Buy or Not to Buy? Time to End the Dilemma

Wondering how to invest in stock market in India? Before you figure out the right ways to ace the deal, let’s provide you with some reality check.

Another Catastrophe Breathing on the Horizon?

Just when the world started coming out of its Covid-19 slumber, and our lives slowly began to limp back to normalcy, it seems that another catastrophe has just found its way to unleash its vengeance on us.

Yes, you guessed it right – it’s the infamous Russia-Ukraine war we’re referring to! Amidst such a topsy-turvy scenario, is it really safe to buy stock? Or, keeping the uncertainties in mind, should you wait for the right time to take the plunge?

A Glimpse into the Stock Market Right Now…..

Owing to the recent Russia-Ukraine crisis, the domestic stock markets have already plunged to some extent. Amidst the growing tension between Ukraine and Russia, the global markets have now joined the international stock sell-off. And, the escalating crude oil price seems to have fuelled up the crisis even more!

After crashing by almost 2,000 points at this stage, the benchmark Sensex is now trading about 1,668 points down at approximately 55.563.92. Thanks to such plunging stats, the worry of a huge economic crisis in our country is now bowling the Indian investors over!

Indian Stock Market and the Impending Market Correction

As per the recent surveys, the Sensex has now opened for trading along with a loss of about 1,800 points. Different sectoral indices are spending more money without earning much with telecom, IT, metal and auto stocks trading by a 4% loss. Corporate honchos and big organizations like Tata Motors, RIL, TCS, HDFC Bank, etc. are now trading with losses of 6%, 4%, 2.86%, and 2.85%.

Mr. V. K. Vijayakumar, the Chief Investment Strategist of Geojit Financial Services has exhorted that the increasing concern and complexities surfacing the Ukraine-Russia crisis will eventually lead the stock market to a correction mode. A dip of about 20% from the peak at NASDAQ clearly indicates at the impending drop in the current stock market.

So, Is It Wise to Buy Stocks Now?

Even amidst this trying economic situation, if you find a stock with an impressive price, you must buy that. But, to reap long-term gains, your investment thesis should be valid. At the same time, you should keep in mind that investing in a growth stock along with a potential of bull market could be risky.

Growth stocks are more likely to fall more in price, especially amidst a crash or a correction period. Such periods could be highly potential for the future growth. Sometimes, certain economic events, which affect the stock market could bring growth opportunities for organizations seeking long-term success. This means that you will always have a chance to bounce back stronger and better even when your stock falls down.

There are some investors out there, who tend to brood over a pullback in pricing. Their aversion mainly stems from their apprehension of greater loss in the future. Now, you need to understand one thing very clearly – a correction in the stock market is quite a common phenomenon. You can’t avoid it. Stock market correction takes place at least once in every year! But you could still invest in stocks especially when they are slightly discounted.

Also, if you keep investing consistently, you will eventually catch a stock market crash or a correction on occasion. Having said this, this might not be always feasible to plan out for the untoward or unpredictable economic situations. If the stock market could predict a correction in the pricing, a crash would not actually occur! In case, you like to conduct research on the stock market, you may not easily find the right buying opportunities especially when the market valuation goes up a notch higher.

There are some stocks that might come up with a greater value for their underlying fundamentals. But it never indicates at zero opportunities! In fact, you can always make an investment in the stock as or when you get the security that you’re determined to obtain from the intended market.

When Should You Buy Stocks?

The stock market opens right from 9.30 AM. and closes up by 4 PM on every trading day. If you are looking to buy stocks, what time you’re choosing won’t make any major difference. However, as per the experts, the most ideal time to invest on stock is between 9.30 – 10.30 AM or between 3- 4 PM as most of the traders usually prefer volatility so that they can easily capitalize on the price swings all through the day. It’s the middle part of a day when trading witnesses more action.

Things to Consider While Buying Stock

Though, it’s true that the world is once again battling another mayhem – besides the Covid-crisis – yet we must not lose hope! With time, the socio-political hullabaloo, which is presently wreaking havoc worldwide, will get better, and with multiple recovery measures in place, there will be a new dawn in the field of stock market.

However, if you’re an amateur, and looking to buy stock anytime sooner, it’s advisable that you should first broaden your knowledge enrolling with course related to stock market training for beginners.

Nevertheless, below are some points which you need to keep in mind while buying stock –

• Plan out your end goal, time horizon, the way you want to invest, etc.
• For better returns, build long-term goals.
• Market value changes constantly. Understand the volatility
• Research on all the diverse investment opportunities available in the market
• Do not fear failure or unimpressive outcomes

Should You Buy Stock – Nay or Yay?

Of course, you should! Why holding back?

Always remember this famous adage –

“The stock market is a device for transferring money from the impatient to the patient!”

So, patience is the key. You must except an overnight miracle. Squeeze out ample time to learn more about stock market, investment, stock selling and buying. Enrol with advanced or basic courses at any reputed stock market training institute in Kolkata. After all, risk of failure always stems from not knowing exactly what you’re doing. Backed by the right knowledge, you’ll lean towards success, and be always ready to tackle any set-back with confidence.