Most individuals obsess about what stocks to buy; they compile lists of stock they hope to get into but never focus on the optimum time to purchase them. One could buy a top rated company and lose money simply because one purchased the stock at the wrong time. Nothing goes up forever; it’s essential you understand this concept for you could end up losing a lot of money. Take a look at the IBM; it was a great buy from 2009 to roughly March 2013. If you put new money into that stock after March of 2013, you would have essentially lost money.
Therefore while building a list of great stocks is important it’s not the most important criteria; knowing when to buy a stock is more important. Understanding market sentiment via Mass psychology plays a key role in determining when you should buy and when you should sell. One of the best times to buy stocks is after a stock market crash.
The main point being made here is that it’s not the quality of the stock that matters the most but the timing of when you buy or sell that matters even more. If you jump into the market at the right time, you could still make a boatload of money by buying mediocre stocks, but if you jump in at the wrong time you could lose a boat of money