Market timing is the strategy of making buying or selling decisions of financial assets by attempting to predict future market price movements. By timing the market, the hope is to make a profitable decision at the time of action.

Market timing gets a bad rap partially because it’s difficult to do consistently to profit. However, I mostly believe the act of marketing timing is misunderstood.

In reality, every investment decision you make is market timing. As rational human beings, we are always attempting to make the best decision possible based on the information we have and the situation we are in at the time.

A profitable decision generally means buying at a time before future prices go higher or selling at a time before future prices go lower. But a profitable decision can also mean buying or selling to help improve the quality of your life. After

Keep reading this article on Financial Samurai.

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