When is the best time to buy stocks in the stock market? When should you buy stocks? After you learned about the ways in making millions of money in the stock market, you ask yourself what stocks should you buy and when.
Note that this discussion is for passive and long term investing and may not be applicable for penny stock focused traders, super active traders, and those who buy and sell stocks within a short time (tsupita).
Looking back at the 3 ingredients of investing – Time, Money, and Goal, Time could answer all those questions.
Time is money. The younger you are, the more time you have in the world to do everything you want. The earlier you started investing, the wealthier you will be. It is the biggest factor to give you the other ingredients: Money and your Goal. That is why we discuss it here.
When should You Buy Stocks?
To answer that question, you must first know and decide what your strategy is as an investor. What is your plan, what is your target?
Without a plan / strategy, you are going nowhere. You’ll likely get emotional in the roller coaster ride of the stock market. Once you get emotional, you’ll panic and this will let you do bad choices.
Like I said, I won’t discuss the strategy of penny stocks traders here and those who buy and sell in a short span of time. What I’m sharing here is about passive long term investing or investing in value because it’s less risky and it is simple. We don’t want to be crazy here and we leave those other strategies to those Wall Street guys and gurus.
Our goal is to be muti-millionaire without going crazy about the complicated world and technical stuff about the stock market.
3 Amazing and Time-tested Strategies of Investing in the Stock Market:
1. Peso-Cost-Averaging Method
Peso-Cost-Averaging or what we call PCA. I know we always talk about this method here. I can’t throw it away because it is proven effective and less risky.
When do you buy stocks using PCA?
You buy stocks no matter what the price is, high or low, you buy anyway. In PCA, you are investing a fix amount of money to buy stocks every month or on every schedule over a long period of time like 10 years or so.
2. Flipping Stocks Method
Flipping Method made famous by DailyPik.com. It is similar to PCA but in this method, you must select the company listed among the Undervalued Stocks. There is a Buy-Below-Price and Target Price involved.
When do you buy stocks using Flipping method?
You continue to buy your chosen stocks as long as the price didn’t reach the Buy-Below-Price, you stop when it did and resume when it hit the BBP again. You continue buying until you reached the target price, that is when you will sell the stocks and practice flipping out other stocks again.
3. MAGIC 10 Method
Magic 10 method is my personal strategy. I choose 10 stocks from my big companies list and spend my budget to buy stocks from them according to the percentage I have set for a given time. I use experts’ analysis on this method. Read this page to learn more about Magic 10 stocks.
When do you buy stocks using Magic 10?
You continue to buy these stocks until the stock was eliminated from the magic 10 replenishing other stocks entered in the group of 10. Follow the action (buy, hold) to buy the big 5 stocks for a long term. Magic 10 is the best and most effective method I find to earn more money than any other method out there.
When is the Best Time to Buy Stocks in the Stock Market?
While you are executing your strategy, take advantage of the best time to buy stocks – that is during and after calamities. In the Philippines, these are usually in the months of September and October because typhoons are prone.
Right now there is also expected volcanic eruption and political turmoil is adding up, take note of these chances and buy more stocks coz prices are low. During these times, its PAKYAWan time. I bet Manny Pacquiao would agree. 🙂
Nothing is certain in the stock market. What is certain is that there will always be peak, recession and recovery. What is important is you execute your plan and strategy until your target time and goal. Have faith and your money will roll bigger than you expected”. – Fehl Dungo
Hi Ms. Fehl, its me again. I’m now a newbie in stock market. I’m just curious about the prices of oil going steadily now. Is it the best time to buy stocks in companies such as petron because my gut feeling says that oil prices will soon rise up again. What are the best oil companies to buy from? Thank you so much! 🙂
I think oil prices will not jump anytime soon because of end of civil wars in Iraq and Libya could release oil reserve
Thank you Ms. Fehl, and since I’m a newbie and I want to learn more re: stock market. Is it advisable if I go to paid seminars? Thank you
Hi Ava. If you opened an account from a stockbroker, they give free seminars. They are helpful and free for members 🙂 The topics are usually the same. But our posts here are created by yours truly direct to the point 🙂 I hate information overload so I share only the important concepts. Cheers!
Hi Ms. Fehl, how much is the subscription fee if I will subscribe to dailypick.com. Thank you.
$4.99/ month only
Hi Ms. Fehl! I would like to ask kung ok lang po to, for example,
per month (based on board lot)
DMC – 100 shares
MER – 5 shares
MBT – 10 shares
AEV – 10 shares
I have a limited budget to invest every month and I’m planning to have these stocks, ok lang po ba na bumili ako ng stocks per month based on the number of shares on my example? I hope I can get a response, thank you
Hi 🙂 MER has a boardlot of 10. You can also buy thru oddlot but price per share is kinda higher than the one at the Main board. Yes, for people who have limited and budget, it’s a strategy to spend and allocate monthly budget buying minimum boardlot to different blue-chip stocks. If you don’t know what are the best stocks to buy right now, join dailypik.com
I am new to investing in stocks and I’m only familiar with UITF’s. I watched a couple of your videos about COL EIP and just have a few questions. If for example, I have 10,000 to invest every month. I understand that stocks are volatile and changes every so often. But with the 10,000 I invest monthly which is a better idea:
Stay invested with the same stocks month by month for 3 years
Example:
November 2014- November 2017
ALI Ayala Land- 5000 per month
TEL PLDT – 5000 per month
OR
Buy different stocks every month for 3 years
November 2014 – 5000 SM/ 5000 ALI
December 2014 – 5000 JFC/ 5000 DMC
January 2015 – 5000 BDO/ 5000 BPI
February 2015 – 5000 MBT/ 5000 AGI
so on so forth until 2017
Hope to get a response from you soon.
If I would be investing EIP having your budget of 10K, I would do your first choice but I would add 3 more stocks and divide my monthly budget buying 5 stocks every month for 10 years. EIP will only work so well for long term investing.
Hello,
Ms. Fehl, I am a newbie in the stock market. ideally how many company should i buy? rightnow I have one (SMPH)
Thank you & more power
If you are a beginner, choose 3-5 stocks first so you won’t be too overwhelmed. It will help you to focus, monitor and analyze your stock performance too.
Hi miss Fehl..if I invested in stocks and I decided to sell after three years
Just follow your plan and strategy. I hope you have it 🙂
Nice article Fehl!
Hope you teach us more about the Magic 10 startegy.
Thank you!
Thanks Yce. I will. Soon 🙂