Investing in stocks and equities are advised to only those investors, who wish to fulfill their long term investment goals. As the market is fairly unpredictable in the short run, in the long run, the markets seem to promote healthy returns.
Gaining high returns is also subjected to your stock options. If you have invested in stocks that have a strong principle base, then high returns can be expected.
For investors, the equity game is for at least three-five years, short term is only for traders and momentum players. Despite corrections in the short term, stocks will do better when invested for a long period of time.
There is no set time for investors to start investing in stocks. Any time is good time. Investing in stocks that have a good momentum in the next 5 years will benefit you greatly. Auto and banking stocks, steel, and some pharmaceutical stocks, are expected do well. So 5-7 sectors, 10-12 stocks and a long-term approach should do the trick.
These days due to increased transparency in the working of the financial markets, investors can get a good idea about what stocks are under speculation. But one must realize that, if the markets go up, they can come down as well. But small correction in the short term should leave the investors unperturbed, as these slowdowns will be corrected in the long run.
But, although the stocks should be left undisturbed, it is important for you to keep a constant check on how the markets are functioning. Do not save all your money into one stock. Due to sudden change in the market course you might loose all your money. This can affect all your financial goals and may force you to take a personal loan or a home loan to fulfill them.
So invest wisely and take prudent decisions. It is not always important to invest in those stocks that provide higher return, but also it is important to give more importance to those stocks that have a good financial record and a reliable past performance.