We tend to buy a stock, mutual fund, house, etc. at at time when we have sufficient cash and then we wait patiently for the asset's value to grow. We wait for the value of the underlying asset to appreciate so that we can sell at the right price and make a tidy profit. There is a lot of literature that talks about the virtues of being patient while investing and how money "compounds" over time. However, many of us don't realize that profits are decided when we buy, not when we sell.
Profits are made when you invest in a really down market. When everything is so beaten down & low that you get to "choose" what to buy and at a "price that is unbelievably good" compared to what it should actually be. So keep some cash in a FD, as an investable money, and use it when the bears run the market - not when you see euphoria and new record highs. Your patience should not only be in staying invested, but, also in waiting for the trough to come when you can buy.
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