The best time to enter the market is when it down and exit when it is
up. However, having said that it is very tough to time the market with
perfection. The traders who frequently follow this strategy heavily rely
on technical analysis, financial reports, market rumors etc. There have
been discussions about the technical analysis in the forum as well.
Some members are of the view that technical analysis indeed works in the context of Nepalese sharemarket, however, other are of the view that given the size of our market and immaturity it would be fatal to rely on technical analysis alone. I cannot say with surety that those who invest in the share market relying in technical analysis are always right.
The investors investing for the long term who depend more on the fundamentals of the company rather than the technical analysis, it would be equally tough to time the market. One strategy that I would recommend for them is to make a clear entry-exit strategy i.e. make up mind in advance that he/she will enter the market when the index dips down to a certain point and exit the market when the index peaks up and reaches a certain point (For Example, make up mind that I will enter the market if the NEPSE comes below 500 and exit when it reaches 550). Having said this, in reality it is tough because as the market picks up we expect it further go up while the opposite might happen and might miss the opportunity to exit and the other hand, when the market is falling down those looking to enter the market expect it to full further and the market might start rising so they might miss the exact time to enter the market.
I think it will be better to consult with your portfolio management/investment company as they study the market movements very closely and they can better advice you regarding enter-exit strategy.
Source : Freak Money, Jamb Forum.
Some members are of the view that technical analysis indeed works in the context of Nepalese sharemarket, however, other are of the view that given the size of our market and immaturity it would be fatal to rely on technical analysis alone. I cannot say with surety that those who invest in the share market relying in technical analysis are always right.
The investors investing for the long term who depend more on the fundamentals of the company rather than the technical analysis, it would be equally tough to time the market. One strategy that I would recommend for them is to make a clear entry-exit strategy i.e. make up mind in advance that he/she will enter the market when the index dips down to a certain point and exit the market when the index peaks up and reaches a certain point (For Example, make up mind that I will enter the market if the NEPSE comes below 500 and exit when it reaches 550). Having said this, in reality it is tough because as the market picks up we expect it further go up while the opposite might happen and might miss the opportunity to exit and the other hand, when the market is falling down those looking to enter the market expect it to full further and the market might start rising so they might miss the exact time to enter the market.
I think it will be better to consult with your portfolio management/investment company as they study the market movements very closely and they can better advice you regarding enter-exit strategy.
Source : Freak Money, Jamb Forum.
