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When is the right time to buy?

2 May 2005
Author: site admin Posted under Investing, Strategies

Making the decision of when to buy a Mutual Fund or Stock can be daunting, and if you pick a time that turns out not to be the best you just have to live with the choice you made. However, if you have a fund or stock that you know you want to be in there is another way. Its called “Dollar Cost Averaging”. All this means is putting the same amount of money each month into a particular investment. This works because, generally speaking, markets tend to go up over time. So by purchasing regular amounts of an investment over time your investment will grow and you can rest easy that you don’t have to pick the best time to buy.

Now I know that doesn’t always work with stocks but if you have a certain stock you think is going to rise over time it doesn’t hurt to buy into a position slowly.

Remember, this works whatever the currents market condition is as long as you have time to grow that investment.

Harvey


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