Many beginner investors wonder: “Should I enter now or wait until the market drops?” It sounds logical to wait for the perfect moment, but unfortunately, it doesn’t work that way in practice.
Many beginner investors wonder: “Should I enter now or wait until the market drops?” It sounds logical to wait for the perfect moment, but unfortunately, it doesn’t work that way in practice.
The truth is that nobody knows whether the market is at a peak, a low point, or somewhere in between right now. Even professional investors rarely manage to time it consistently well.
And timing comes with quite a few risks: if you miss just a few of the best trading days in a year, you’re already missing out on a lot of returns.
The perfect moment does exist, but we only know when it was in hindsight.
Looking at the history of the stock market, you see a clear upward trend. For instance, global stock markets have grown by an average of 8% per year since 1987. Of course, with peaks and valleys, but the trend is clear: upward. That’s why the rule is: the earlier you start, the longer you participate in that rising trend.
The perfect entry point can’t be timed. Therefore, it’s better to start as soon as possible. Because the best results are achieved by investing for as long as possible.