Invest Matter

"Some people say you should buy stocks when prices are going up, while others say you should buy when prices are falling. So, which is the right approach?" That was the question asked by someone I had just met at an event. He was genuinely interested in investing in the stock market, but this question had been bothering him for a long time and had caused him to postpone his investment plans. It is an excellent question, and I would like to share the explanation here. Whether you buy stocks when prices are rising or when they are falling depends on your investment objectives and your tolerance for risk . Do you want faster returns and are you willing to accept higher risk? If your answer is yes , then you may consider buying stocks while their prices are rising and selling them at a higher price. This approach is known as the Momentum Strategy . To apply this strategy successfully, you must have strong discipline. Greed should be avoided at all costs. A solid understanding of ...