Buy when the company's long-term potential far outweighs its current price, and you have the patience to ignore short-term volatility.

Many investors wait for a stock to trade sideways for a few weeks or months. This "basing" period suggests that sellers are exhausted and buyers are stepping back in. 4. Positive Catalysts

If you use charts, you don't want to buy a stock while it’s crashing (falling knife) or when it’s overextended (vertical climb).

For most people, the "when" matters less than the "how long." If you plan to hold a stock for 10 years, a 2% difference in entry price today is negligible. If your research says the company is a winner, (buying a fixed amount every month) is often smarter than waiting for the "perfect" dip that might never come.