One of the biggest fears investors face is buying at the wrong time. Especially when the market is near a record high.
Nobody wants to invest just before the market dips. But history shows that trying to perfectly time your entry and exit points is almost impossible — even for professionals.
The good news? You don't need to get the timing right to build serious wealth with ASX shares.
Time in the market beats timing the market
Markets move in cycles. They rise, they fall, and sometimes they go sideways for a while. But over the long run, the trend has been up. Investors who stay the course, keep adding to their portfolios, and let compounding do the heavy lifting tend to come out far ahead.
For example, if you had invested steadily through past downturns like the Global Financial Crisis (GFC) or the COVID crash, those temporary setbacks would now look like small bumps on a much larger growth curve.
Where to focus
The trick isn't predicting what the ASX will do next week or next month. It is owning quality businesses that can keep delivering for years.
Blue chips like Coles Group Ltd (ASX: COL), innovative growth names like WiseTech Global Ltd (ASX: WTC), and diversified ETFs like the Vanguard Australian Shares Index ETF (ASX: VAS) all have the potential to compound steadily over the next decade.
By sticking to strong fundamentals, you make short-term volatility far less important.
Regular investing
Instead of waiting for the perfect moment, set up a regular investing plan.
Contributing a set amount every month or quarter means you will naturally buy more when prices are low and less when they're high. This is called dollar cost averaging.
Over time, this smooths out your entry price and reduces the stress of trying to outsmart the market.
Foolish takeaway
Worrying about market timing is one of the easiest ways to derail your investing journey. The evidence is clear: consistent investing in quality ASX shares and ETFs, held for the long term, is far more powerful than guessing short-term moves.
So rather than trying to jump in and out at the right moments, focus on building a portfolio that grows steadily with time. In the end, it's time in the market — not timing the market — that builds wealth.
