On a daily basis, the stock market goes up and down like a yo-yo, buying one day could make good profits while buying in another could result in a catastrophic loss. At the times of bear markets, the times where stock markets head down quickly, buying a weak earlier or later could have a significant impact on your profitability.

Knowing when is the right time to buy your stocks is crucial not only to maximizing your gains but also to protecting you from unwanted losses.

Choosing the right time to buy stocks

In any stock market in the world, there are bear markets, bull markets and the bottom. A bear market is the state of the market when it's going down while a bull market is the state of the market when its going up. The bottom is the turning point where the market starts to change its state from being a bear market to a bull market.

Thus if you made a purchase somewhere near the bottom you will certainly make good profits. Bottoms don't come everyday, maybe you encounter one once every three years, but as soon as you encounter it be sure that its one of the best buying opportunities you will ever find.

You don't need to keep trading or jumping from a stock to another in order to make profits as long as you made a right purchase. Two or three correct purchases a year could make you 10 times the amount of money a trader makes, trading is a loss of time and money. After all you want to make money to enjoy your life not to spend it in front of the trading screen feeling stressed.

How to tell when the market has bottom out?

• When everyone tells you that you must pull your money out of the stock market immediately 
• When media stars say that stocks have reached 3 year lows 
• When everyone is afraid 
• When black Mondays, Sundays, or Fridays appear 
• When all of those who were afraid leave the market

No one even Warren Buffett can buy at the lowest price. It almost impossible and you will never be able to determine it, you just need to buy somewhere near that bottom then hold on to your position, that alone will make your purchases profitable.

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