When you are doing any kind of business, you always remain conscious about taking precise and accurate decisions. No one can deny the fact that timing plays a fundamental role in the success of any kind of business. As far as online stock trading is concerned, these aspects gain huge importance. You are dealing with a fluctuating market where trends always keep on changing. Things can up or down in no time. So what is the best time to purchase stock?
Since thirty-five years, there are twenty-nine instances where the market dropped more than five percent. What is interesting to note that eleven times out of twenty-nine times, the market tends to drop further in the upcoming weeks. In certain cases, it dropped further ten percent and then it started to regain its position. Then in the following weeks, it regained the initial ten percent losses. It shows that such time is the most appropriate time to purchase stock and get some profit.
By analyzing the data critically, we find a further decrease in the following thirteen to fourteen weeks where there was a considerable decrease in the price of stocks. However, out of those twenty-nine, eight periods showed a gain of more than ten percent after the initial losses of few weeks.
Bottom line is that when stock market tends to decrease, the overall decrease in the prices increases with the initial fall in the stock prices. Simply speaking, it shows a considerable decrease in the following weeks. If you keep an eye on the market trends, this is the best time to purchase the stock because the prices would return to normal stages at the end of this cycle. In this way, you will be able to make some good and healthy profit.
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