Imagine if you only played a video game when the difficulty level suddenly dropped—every session would be a chance to score big points! That’s the idea behind investing solely during market crashes. At first glance, it might seem brilliant to wait for those “on-sale” moments when prices plummet. However, timing the market perfectly is as tricky as predicting when your favorite game’s bonus round will appear. While buying during a crash can yield high returns when the market rebounds, it’s nearly impossible to catch every low point. Sometimes, the market might continue to fall even after you jump in, or you might miss out on steady growth if you sit on the sidelines waiting for a crash that never comes. A more balanced approach is to invest regularly, taking advantage of market fluctuations over time. This way, you capture the benefits of both rising markets and discounted prices during dips. In other words, while investing during crashes can be a powerful strategy, relying solely on them is like putting all your eggs in one unpredictable basket. Diversify your approach, and you’ll be better positioned for long-term success.
