A lot of questions have been asked on how one can be able to take advantage of the highs and lows of the stock prices to their advantage. Is there a right time to get into the market? And when the prices get volatile or usually low, should you take all your money and cut losses? There are no general answers to these questions but these steps should be able to help you again an edge in your investing journey.

Invest regularly. Piecemeal investing is better than investing lump sum. Investing a certain amount of money Ksh 5000 per month, for example, irrespective of the market conditions is encouraging as opposed to one off lump sum. This cushions you from buying at a go when prices are at their peak or missing the opportunity to buy when prices are low.

Diversify: This is a very important aspect in reducing your exposure to losses. A careful investment in a number of stocks in the five sectors at the Nairobi Stocks Exchange (NSE): agricultural; commercial and services; finance and investment; industrial and allied and Technology, would be advisable. Gains on one sector would offset losses on another.

Be realistic: The NSE is currently bearish and investors are very optimistic that the prices will continue rising. However, when buying, take to look at the fundamentals and if possible seek expert advice because with time, the market will correct itself. You will be better off if you invested in a stock at a price that reflects its value.

Focus on the long term: Experience has shown that when investing in a stock at the NSE in the long term you rarely lose. Stock market price are volatile in the short term and frequent buying and selling increases your market risk and your chances of making losses. Invest in the long term and it will pay off. 

Always rebalance your portfolio: Over time, the value of your investment in the four sectors of the NSE main investment board will change. Always reassess your investment to ensure that it is giving you the required return and meets your investment plan.