Drip feed money into an ISA/SIPP etc..

[Phooey]

I currently put money into my ISA Wrap by Direct-Debit on the 1st of every month. I chose the 1st because it's easy to remember and most of my DD's go out on the 1st too. I'm sat here thinking if there are any tips for choosing a time of month for buying, i.e. - is the market generally higher at the beginning of the month and therefore the worst time to buy in etc etc?

Cheers

[thekingisdead]

Over the short term markets are irrational. Impossible to time, correlate anything like that IMO

[Phooey]

thekingisdead said:

Over the short term markets are irrational. Impossible to time, correlate anything like that IMO

I thought as much. Probably sounded like a daft question but didn't want to get 20yrs down the line and someone say to me.. "you should never invest on the first of the month.."

Cheers

[Jon39]

Phooey said:

I currently put money into my ISA Wrap by Direct-Debit on the 1st of every month. I chose the 1st because it's easy to remember and most of my DD's go out on the 1st too. I'm sat here thinking if there are any tips for choosing a time of month for buying, i.e. - is the market generally higher at the beginning of the month and therefore the worst time to buy in etc etc?

Cheers

Good that you have made a start, Phooey. The clue is in the word market.

It is felt that the UK stock market works efficiently for both buyers and sellers, so I am afraid they don't have cut price shares on particular days.
There are some patterns, but they cannot be relied upon. December is an example when the market often rises. It is thought that fund managers want to look good, and might be buying into companies that have had rising share prices that year.
The summer months sometimes have declines. Volumes a little lower than average.
I am always pleased when there are surprise company announcements, that the market reaction (ie price movements) are following the announcement. It just confirms that the market place is working properly, and secrets are not leaking out early.

Forget trying to time the market, and instead concentrate on selecting businesses which you think will prosper during future years.

If you want to learn, suggest you look on the internet for interviews with Mr Warren Buffett. You will see that he has done 'quite well' as an investor, and is also keen to pass on his knowledge. His annual letter to shareholders of Berkshire Hathaway is also well worth reading.

Edited by Jon39 on Friday 13th October 19:05

[Phooey]

Thanks Jon39