When to invest in stocks?

So make sure you do what everyone else will do before they do it.

When to Invest in Stocks?

 

Answer to this question is very very short.  NOW!

 

So when to invest in stocks?

 

Invest when you will get the most stocks for your money!

 

http://www.sayeconomy.com/when-to-invest-in-stocks/



But back to our economic cycles. I will now try to explain economic growth cycles through movements of stocks.

Let’s start our story when the prices are low. For example Company X has its stock value of €100 for one stock.

• The price is very low so many people start buying.
• Because everyone is buying the price goes up.
• And because price is going up and up and up more and more people are buying.
• This is a positive growth part of the cycle.

But as everyone could guess this cannot go on forever.

• Sooner or later people are happy with what they have earned from stocks and they start selling.
• And when one of the big stock investors sell their share, the stock price drops.
• Of course it doesn’t drop for much but it drops enough that more people get scared.
• Once more people get scared those people sell as well because they’re trying to protect their investment.
• That then cause that the price drops a little bit more and once the price drops a little bit more and more people get scared, more people sell and price drops a little bit more, again more people get scared and so on and so on.
• As you might have figured it out already we have entered the negative economic growth part of the cycle.
• The prices are dropping and dropping and dropping and this is what we are looking right now on our socks every day.

However the good news is that the economy is not just one cycle. There is whole bunch of economic growth cycles and that cycle that is going on at the moment will end sooner or later as well.

• The prices are going down and once they’re down enough people decide to buy again.
• Once one of the bigger investors decide that the price is low enough to buy and buys a big share of stocks the price goes up a little bit.
• That is a signal for smaller investors that the cycle has turned and the time of positive economic growth is coming.

 

Because many investors are now expecting that the prices will go up they start buying stocks.

• And as everyone knows when a lot of people are buying stocks prices of stocks are going up.
• Because prices are going up more and more people are buying stocks.
• That then causes that prices are going up a little bit more and as you have noticed we are again in the part of the cycle of positive economic growth.
• Our cycle has ended and the new one has began.

 

I hope I managed to explain the logic of economic growth cycles. The most important thing to know about economic growth cycles is that when investing you must not do what everyone else is doing. Because once everyone else is doing it there is not much time left before the whole cycle will change and turn around. So make sure you do what everyone else will do before they do it. That will give you a head start and a chance to earn lots and lots of money.

Economic Growth Cycle
http://www.sayeconomy.com/economic-growth-cycle/