To be honest, no one knows when a bottom is in. Only time can tell.  I am sure you are wondering, “When should I invest then?!”  Well, there isn’t an easy answer; however, there are a few ways to help you choose.

Example:

The market is currently in a down trend. Suddenly one day it rebounds. The next day it rebounds again. What do you do? You can put 1/10 of your money to work in a few stocks. Now, if the market goes down you only have a 1% risk. (10% money at work with 10% stop loss.) If it goes up, you have great upside. You will also want to keep adding to your positions and adding new positions in your stock portfolio.

Another thing you could do is invest after a confirmed market rally. This will help cut losses and help capture gains. You can get the status of the market at investors.com.

Note: If anyone tells you they know when the market is at the bottom - they are flat-out liars. They might pull out their charts and tell you why it is a bottom or about history. Now, history helps us predict things such as in the market, but there never is a for sure in the market.