Timing the market vs Time in the market!

How to time the stock market? What is the strategy to keep invested in stock market? To be honest – this is exactly the opposite which you should be thinking about.

I always ask people if they have purchased a house today and for some reason, the house depreciates either in local currency or USD terms in short term – would you be worried and start to look for disposing off at whatever price you get? Whether the house is for your own living or for renting out – you will not keep a short term approach for the house as you know in the long term, it will only increase in value and will give you rental return for sure!

So while’ you have one benchmark for house, why not have the same lens for stock market and keep the same time horizon you keep for a house – you will change your way of thinking as you imagine the stock market is your long term investment.

It is imperative to have a long term approach for any investment you do and stock market is no different. As Warren Buffet says, when you are buying a stock of company – consider that transaction as becoming the co-owner of the same company and keeping a part of it. If that’s the mindset, you will own the company and make sure it gives you dividends and price appreciation before selling it of.

This week’s videos, in case you have not watched them yet:

Keep hustling
Happy investing 🙂