Should I only buy when the stock falls?

Asked 4 years ago

When is the best time to buy stocks? To me, it makes sense that the ultimate time to buy stock would be when the value falls, however, an experienced opinion would still be appreciated.

Thorsten Steins

Saturday, May 08, 2021

Hello,

No, it does not always make sense to buy just when prices are falling. In fact, this can even become a real problem, namely when prices continue to fall and do not rise again or do not reach the previous price value. A good example of such a problem is the Wirecard share. In fact, before deciding to buy, one should carry out a precise analysis of the company or the company's development. It can also be a good idea to bet on rising prices if the analysts' forecasts assume that the prices can rise even further. Regardless of whether one invests in rising or falling prices - in both cases it is important to have a close look at the future development of the shares of the respective companies in order to bet on shares that offer a corresponding profit opportunity. So currently falling prices are not always the right choice when buying shares.





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