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Automatic Investment- Time not Timing

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solitude Are you thinking about whether it is the correct time to invest now? Well, you are not alone, everyone from your friendly investment bankers and analysts to the retired uncle sitting in the coffee shop are thinking of this question.

However, the correct question to ask is not 'when to buy' because the answer is always 'I should have....'. Instead the question to ask should be how long you are going to be investing for.

No one knows for sure when is it a good time to sell nor when it is a good time to buy.

Once you know what is the question to ask yourself, how do you make time become the critical factor but not timing?

The answer is to make buying an automatic decision using dollar cost averaging where you are buying into a market/fund/stock at regular intervals. This only require you to initiate the first buy order after which everything is set up so that it becomes an automatic decision which will go on, until you decide to stop it.

This means that you are thinking only of what investments you should be going into and spending your time doing the analysis of that, rather than futile efforts at trying to time your investment such that you sell at the top and catch the bottom when it turns.

I used this method for about 5 years investing a regular sum of $100 to build a position in Greater China unit trust/mutual fund. This yielded a final sum of more than $23,000 after sinking around $9000.

I now use this technique to buy $100 of an Asian fund on top of $200 to buy S&P each month. With this method, when the market falls, you actually smile, because you know you are getting more units of what you are buying.

Make your investment automatic, earn higher returns through a disciplined approach and be rewarded with the financial freedom you yearn for.

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