Stock Investment – When to Enter and Exit the Stock Market

1. Whether you are just off the boat to hit the stock market or an old chap therein, you are likely to be on the horns of a dilemma, “when is the right time to enter the stock market”? While purchasing stocks. This, no doubt, is a valid and much needed suspicion as there are virtually limitless stocks being vended off and your nervous fingers scream, where do I start? Another scrape to which not everyone lends any heed but few, is, “when should I exit the stock market?” Most people prefer and retract from their stocks, when faced by highly volatile or low market without analysing the prospects, which may yield covetable results later. This write-up elaborates all that which you need to know about the most fitting times of making an entry into or exiting the stock market. So, let’s dig in straight away! When to enter and exit the Stock Market? Remember, risks are omnipresent in the stock market, though they might be reduced to a certain extent. Understanding market mood is significant here, rather than simply going with your sentiments and intuition. Prefer analysis of the stock fundamentals and other details, and get yourself counselled by a professional in the regard. There are four crucial data factors you need to consider before musing on the subject of the entry / exit herein. P/E Ratio of NIFTY: For stock investments, it is the ratio of Market Value to Earning Per Share. In case, the P/E is elevated, it implies that the stock is trading at higher costings contrasted to the earnings. For instance, if the P/E is 24, then for an investor it indicates that he/ she is prepared to reimburse Rs. 24 for each 1 Rs. earning of the company. While if the P/E of Nifty passes over 24, then higher possibilities are those of downtrend which hints at increased valuations. And if the P/E of Nifty is not more than16, probability of ascending market motion is indicated. This has been supported by the scrutiny of the stock market activity of the celebrity investors like Warren Buffet and other historical data. Just as the P/E gets 24, the possibilities of negative returns increase tremendously. This can be backed from the withdrawal of the successful investors from the market when Nifty was swapping at P/E of 24 during low market in March’ 15. When the NIFTY trades at P/E of 16-20, it is deemed as the ideal time of purchasing the stocks but still vigilantly. So, the crucial pointers can be enclosed as follows: 1. Higher than 24: Sell and Exit 2. Between 20-24: possibilities of high volatility in the market; thus, purchase watchfully. 3. Between 12-16: Accrue 4. Below: Go greedy, purchase and invest in the stocks. Click Here Stock Investment – When to Enter and Exit the Stock Market