Timing the Market vs Time in the Market: Which One Is More Effective?
As the Indian stock markets touch an all-time high it leads to a dilemma whether to book profits or safeguard the gains. What steps should you take in such times? Should you try to time the market to book profits or follow the time in the market and stay invested?
To find the answer you should first understand why the value of stocks rises. The first reason for the price of any asset to rise is that there is more demand than supply.
Mutual fund investment | Image Credits: appreciatewealth.com
Stocks allow investors to own a part of a company. The main aim of the company is to earn more profits for their shareholders. As the company continues to increase its earnings the stock market will continue to move up.
Timing the market and time spent
It is well understood that as the companies continue to earn it helps to propel the stock market over some time. But this does not convince...