All about timing your investing

Many inexperienced investors are overly concerned about the timing of their investing. They spend a great deal of time trying to determine when they should begin investing, while they try to navigate the ups and downs of the investing world. They often become so preoccupied about trying to time their investing; they often lose out on potential investing opportunities. While it is true, that if you begin investing during a downturn in the market, you can lose money, however, you should keep in mind that the same investment, over the long term, will most likely go up. The time value of investing is truly valid, so investors should not worry if they have down the proper research before they begin investing. However, there are other aspects of timing in regards to your investing that you should be aware of. Here is all about timing your investing-

- Investing and worrying don't have to go together-It is important to focus on the aspects of investing that are really important, and not let the worry overtake you. Financial experts advise that instead of worrying about when to invest that you concentrate on how long you want to keep your money, in your investments. This
means that you will need to educate yourself about the different degrees of risk, return and the investing strategy of any potential investment. Only when you have this information can you make the right decision as to whether or not the investment is well suited to your investing time frame. The bottom line is that if you are looking to fund your retirement, or have a long term investment, you will choose a very different investment, then someone who is looking to invest, only for the short term.
- Understand what the money really means-While this investing guideline may not seem to have much to do with timing, the reality is that it has everything to do with timing. If you need your cash to purchase a home, fund an education or even meet your basic necessities, then this is money that you not be invested. In addition, you should never invest money that you simply cannot afford to lose.
- Know when to sell-To many times investors are overly worried about when to purchase, a stock, however, the most crucial timing may knowing when to sell. Keep in mind that this guideline will not apply to bonds, since they will mature on their own, however, you will need to keep this in mind when it comes to mutual funds and stock purchases. You should not allow yourself to buy into the myth that you can "time the market". This is a virtually impossible concept that if it were true, would mean that are more investors would be making a lot more money. You will need to have a clear understanding of when to sell based on your financial needs and investing goals, rather then when the market is at its highest point.
- Figure out how long you can stick with it-One of the most basic timing mistakes that inexperienced investors make it to move from investment to investment. Beginning investors often think that the grass is always greener, so they move their money, around. Studies have shown that those investors who stick with their investments, in the long term, are the ones that make the most money. If you have done the right amount of research you should prepare yourself to stick with it. The only exception to this rule is if you feel your mutual fund is not being managed correctly. Then you should consider moving to a different mutual fund. However, the basic rule of investing is to pick out investments, send in your money, and be prepared to forget about your investments, for a long time.