Just think of all the people who bought stocks last month and have watched their portfolio shrink. Aren't you glad you didn't choose to get into the market back then like they did? You're very fortunate right now if you're thinking of entering the stock market in a big way. Stocks are on sale. Just as I always like to wait for a discount or use a coupon when buying clothes or groceries, I also like to wait for a sale in the stock market before buying stocks.

How can you tell that the stock market is bottoming out right now? Well, this is the million dollar question and I'll admit I never really know for sure, nobody does. But, what I use to make my bold statement that we are at a low comes from the sentiment that I get a feeling for from the stock analysts that I follow. I watch many shows on T.V. like Kudlow and Company and Jim Cramer's Mad Money. I watch Nightly Business report on a daily basis to keep myself up to date on the psychology that investors possess. This is really the key in my opinion.

You can read up all you want on stats and try to say that interest rates and inflation are going to kill the market. You can say that the fed wants to ruin the economy and cause a major slowdown. But, that's all really unimportant if investors tune that out and decide they are bullish on stocks despite what they fed wants to try and do to the market. Statistics and economical data only go so far to determine if we have reached a bottom in the market. 90% of what you need to base your decision on is psychology and market sentiment. Watch as many analysts as you can and try to go with the flow. Never trust any one source, but follow as many as you can and you will know which way the market is moving. This way you have the rest of the investors at your back and moving with you when you want to enter the market.