The best time and the worst time in the stock market is only on retrospect. Like for example, today after the fear of the trade wars between US and Japan the market has dropped, Rs 1.57 lakh crore of the investors wealth has been lost today. Mr. Raghuram Rajan, has stated that the implications of this are going to be huge, if this trade war escalates. So for those had invested, it's not good at the moment but for those who want to invest, it's good to start. So, timing the market is like trying to catch a falling knife and can have huge loses.
Few things to remember when trade in stocks or equities
1.Never invest so much that you lose sleep, invest something that you do not need in a hurry.
2. Never invest in a lump sum (this concept is only for FD)
3. Plan,research and study the stocks before you get into it.
4. Start with Mutual funds and then graduate to specific stocks
5. Invest in tranches and spread it across to spread the risk also.
6. Assess your risk appetite, higher the risk taking atitude, higher would be the gain and so also the fall.
7. Be discplined and start, I would say buying a few numbers of the stocks that you have studied and narrowed down.
8.At times of uncreatinity like this gold and liquid cash are better than stocks and mutual funds.
Likewise, we need to know which sectors to avoid, right now the banking sector is on shaky grounds. The market is going through a correction phase. Such drastic falls although scary, are good in the long run, this means that the hyped up prices based on sentiments, good news is taken off and we are closer to the real value. This means the risk of a further drop would be there but the chances of upward movement is much larger.
I wouldn't say we should exit mutual funds now, start choose a couple of hybrid funds that appeals to you and invest in a SIP mode.