Market Timing - What Is It and How Can You Profit From It?
Everyone who has ever bought or sold anything in the market has practiced market timing, whether they know it of not.
Just as every single trade starts with a day trade, timing is the MOST critical aspect to being successful.
You my by just the right stock, at just the wrong time - and no matter how good the company is, you will lose money.
And sometimes lots of money.
However, you could buy the wrong stock, but just at the right time and make money hand over fist.
How can that be? Market Timing.
How do we use market timing to our advantage? Simple - there are good times to buy and sell and there are bad times.
There are a plethora of indicators available to traders and investors to help them with this timing.
We offer over 160 indicators on our site for anyone what subscribes on an annual basis.
As a contrarian indicator, when fear is high (the indicator is low) the market is more likely at a bottom.
Just as when complacency is high and there is no fear, the indicator is at the upper levels, and the market is more likely at a top.
It's that simple.
Not just for traders, investors are utilizing this information more and more.
But before we get into that, let me first discuss briefly the difference between investors and traders.
Traders utilize larger sums of money into positions to leverage shorter term swings in the market place.
While Investors utilize small amounts of money over time into longer term positions with the hope that overtime the position will gain in value.
To the trader, investors are crazy because they leave their money in the market for extended periods, exposing it to all types of risk including market crashes.
To the Investor, traders are crazy because they don't understand how you can time the market.
To profit from the market, you have to understand both.
How do investors counter the impact of market timing? Dollar Cost Averaging.
Simply by investing the same small amount of money over time on a common frequency, you somewhat lessen or negate the impact of market timing on your portfolio.
Imagine this.
You get a large sum of money, the market is cranking higher, so you rush and put all that money to work at once.
The market corrects some 50%, and you picked aggressive funds, so you lose more.
Much more.
That's how market timing can work against even the best investor.
Your goal, regardless of whether you are an investor or trader, is to position your money accordingly, on a timely basis so that 1) it will be there when you need it and 2) it will grow.
So join me and start learning today how to utilize market timing in your trading and investing.
Just as every single trade starts with a day trade, timing is the MOST critical aspect to being successful.
You my by just the right stock, at just the wrong time - and no matter how good the company is, you will lose money.
And sometimes lots of money.
However, you could buy the wrong stock, but just at the right time and make money hand over fist.
How can that be? Market Timing.
How do we use market timing to our advantage? Simple - there are good times to buy and sell and there are bad times.
There are a plethora of indicators available to traders and investors to help them with this timing.
We offer over 160 indicators on our site for anyone what subscribes on an annual basis.
As a contrarian indicator, when fear is high (the indicator is low) the market is more likely at a bottom.
Just as when complacency is high and there is no fear, the indicator is at the upper levels, and the market is more likely at a top.
It's that simple.
Not just for traders, investors are utilizing this information more and more.
But before we get into that, let me first discuss briefly the difference between investors and traders.
Traders utilize larger sums of money into positions to leverage shorter term swings in the market place.
While Investors utilize small amounts of money over time into longer term positions with the hope that overtime the position will gain in value.
To the trader, investors are crazy because they leave their money in the market for extended periods, exposing it to all types of risk including market crashes.
To the Investor, traders are crazy because they don't understand how you can time the market.
To profit from the market, you have to understand both.
How do investors counter the impact of market timing? Dollar Cost Averaging.
Simply by investing the same small amount of money over time on a common frequency, you somewhat lessen or negate the impact of market timing on your portfolio.
Imagine this.
You get a large sum of money, the market is cranking higher, so you rush and put all that money to work at once.
The market corrects some 50%, and you picked aggressive funds, so you lose more.
Much more.
That's how market timing can work against even the best investor.
Your goal, regardless of whether you are an investor or trader, is to position your money accordingly, on a timely basis so that 1) it will be there when you need it and 2) it will grow.
So join me and start learning today how to utilize market timing in your trading and investing.