I have lots of friends who are asking me about getting into the market now. With the stock market hitting new highs regularly, the excitement of investment is spreading wider.
Historically, many people jump into the market at the absolute worst time. They end up buying in when the market is high. The result is that often they get burned over time and take losses. Buying stocks is no different than anything else. You want to buy when the sales are on, not when everything is full price.
While the market could still rise higher, no one, not even the big brokerage firms, knows when it will top out. The important question is "Is the market RELATIVELY high?" To that question, the answer is unquestionably - YES. This means the downside risk of investing now is much higher.
Psychologically, to invest in the market, you should be more fearful at the market highs and less fearful at the market lows. This is VERY HARD to do, but it is a MUST to be successful investor.
Personally, I am pruning securities now and analyzing companies that I might want to buy when the "sales" occur. The stock market can enable you to achieve great gains, but you must control your emotions to be successful.
Don't be road kill. Be successful!
