If you are interested in the stock market and monitor them just as a hobby. Or you are someone who is figuring out a good timing to enter the markets so that you can start to trade in stocks then this article is for you…

The stock markets of India are trading in at an all-time highs Sensex closing in at 51,279.51 and Nifty 50 closing in at 15,174.80 as of 10th March 2021. (It will be interesting to look at these numbers when we study them in 2025)

I always have this thing in the back of my mind that is it a good time to enter the market and buy those lucrative stocks or wait so that the market corrects itself and then I will invest for even higher returns. 

But if I keep on waiting for markets to correct it will lead to loss of opportunities. Or should I wait for a better opportunity just because I have a fear that if I buy today the markets might go down tomorrow.

If you want to invest in the stock markets it all leads to how you go about implementing your investment plan. The investment plan should focus on your financial goals they can be long-term or short-term. Because historically the stock market has gone up more than it has gone down.

First-Time Investors: If you are totally new to the stock markets with limited trading knowledge and do not have ample time to actively invest in the markets i.e to select different companies, then monitor their stock progress and then make a decision after calculating your risk exposure. If this feels overwhelming to you then there is a simple option start a SIP in Mutual Funds. Buy equity mutual funds its a similar kind of investment experience. Your money will be managed by a professional fund manager. The funds are pretty diversified which means that they are invested in different companies from various sectors. This significantly minimizes your risk, you don't have to monitor stocks daily and if you set up auto-payment it becomes very easy.

Session Investors: If you have already brought some stocks and are trading for a while you can sit down and review your existing portfolio. See how your money is divided into various sectors (Healthcare, Automobile, Pharmacy, IT, etc) make some changes according to the market conditions. Look for companies performing relatively well in any given sector with respect to their peers. Exchange stocks that don't seem to add value to your portfolio.

Diversify your portfolio so that it has equal exposure. If you have stocks of SmallCap or MidCap companies it might be risky to hold onto them in an upward trending market. Buy stocks of companies that fall under different market capitalization. You can invest in LargeCap stocks as these stocks generally tend to perform well in high volatility.

A general cautionary note always avoids buying into certain stocks just because everyone around you is doing so. Never invest in something you don't understand always ensure that you understand what you are getting into before investing.

If you have read this far kindly like this article and share it with your friends. So when I see it again I will get a dopamine boost to write more articles :)