“You really need to have at least two positions open at any given time if you’re going to go long on an investment. The best time to open is around the $50 or $60 level because there’s really low volatility and if you do well to the time you open you have the time to profit,” says Mark Zandi , chief strategist at Moody’s Analytics .
What’s important to recognize about the best times for stocks is the timing of the sell-off. “The bear market is when the market has been down for seven weeks in a row. If it’s been down for a while you have too much to lose,” says Klem Tafelses, chief economist for The NPD Group.
“You shouldn’t put your money in a stock with a bearish outlook since it’s going to take a while to reach parity with other equities,” agrees Mark Zandi.
As for the best time to sell on a dip, it’s most likely when you’re down 0.25% or less (if your stock is down, it’s best to buy before the dip). “If your stock is down 0.25% or less you’re going to get some great gains because you can sell back to where it was then,” says Zandi.
Which time frame am I talking about?
The best time to buy a stock is after the bottom. In other words, you’re going to gain a lot if you hold the stock for three or four weeks. Here’s the key to making money on dips. “The best time to sell on a bear market is two to three weeks later, which is when you will be down 10% to 10% to 15% on a year-to-date basis, said Daniel Black , chief market strategist for the BlackRock Group .
Why two to three weeks later? Because this is a “weak tail” market where stocks are up 0.5% to 0.5, so buying before this is a great way to gain.
So, if you think you’re in a strong tail or weak trend market, if you think you may be in bear market territory after two to three weeks, go long. “If you really need to sell, after two to three weeks you should buy,” says Tafelses.
When is the best time to sell?
Mark Zandi, “You really need to have at least two positions open at any given time if you’re going to
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