“Whenever I have had the patience to wait for the market to arrive at what I call a Pivotal Point before I started to trade; I have always made money in my operations.” — Jesse Livermore
As recounted in Edwin Lefèvre’s pseudo-memoir of legendary Wall Street trader and investor Jesse Livermore — Reminiscences of a Stock Operator — the biggest money is made in the markets when you wait for the right time to invest. And this sentiment is echoed by Warren Buffett’s long-time investing partner, Charlie Munger, who said:
“The big money is not in the buying and the selling, but in the waiting.”
In my two decades as a self-taught trader and investor, I’ve found this to be true. I’ve found it hard to make money when trying to trade all the time, and I’ve scored my biggest successes in the wake of the 2008 financial crisis and the February/March 2020 coronavirus-cased market crash, both of which were worth waiting for.
So, Will October 2021 Be the Right Time to Buy Stocks?
Despite Mark Twain’s assertion that October is a particularly dangerous month to be speculating in stocks, it could also turn out to be one of the best.
If the markets fall far and fast in the first weeks of October, just as they did about 18 months ago (see chart), it could be possible to pick up some stock bargains before the end of October or soon after. Then make big money from the rebound.
S&P 500 Chart (source: Yahoo! Finance)
In one of my investment accounts — my Self-Invested Personal Pension (SIPP) — I’ve been sitting on the sidelines after cashing out my investments a few weeks ago. Now I’m waiting for the right time to buy, and with markets high (therefore prone to a significant “correction”), the time could be nigh.
Get Ready to Invest with the Best Broker in October 2021
Timing could be everything, and it’s important to be ready to pull the trigger when the time is right by signing up for an online stock broker account if you don’t already have one. You could even learn the ropes by placing trades with virtual money in a broker’s “demo” account, ready to make the switch to a live account when the time is right. These are two of the best brokers for you to try:
eToro is one of the world's leading multi-asset trading platforms offering some of the lowest commission and fee rates in the industry. It's social copy trading features make it a great choice for those getting started.
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