Perhaps a more appropriate question an individual investor should be asking is "Do I ever know when the right time to invest is?"
Market timing is extremely difficult to do. Even the professionals who dedicate their careers to this question don't get it right most of the time. So, unless you have a crystal ball, you should not be concerned about timing your investment, which makes the question above completely irrelevant. A long-term investor should invest on a regular basis during good and bad times. In the long-term, you will average out the ups and downs of the market.
There is a tendency among investors to invest in the market at the wrong time. This happens because people invest based on their emotions. A rational investor would buy stocks when prices are low and sell when prices are high. Yet, most people do just the opposite, they invest when they feel confident in the market, which happens to be when the prices are high. If you have the discipline to invest during good and bad times, you will succeed in the long-term regardless of the vagaries of the market.
By applying RCA, you can solve this issue!
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