Market Timing
Definition of 'Market Timing'1. The act of attempting to predict the future direction of the market, typically through the use of technical indicators or economic data.2. The practice of switching among mutual fund asset classes in an attempt to profit from the changes in their market outlook. |
|
Investopedia explains 'Market Timing'Some investors, especially academics, believe it is impossible to time the market. Other investors, notably active traders, believe strongly in market timing. Thus, whether market timing is possible is really a matter of opinion.What we can say with certainty is that it's very difficult to be successful at market timing continuously over the long-run. For the average investor who doesn't have the time (or desire) to watch the market on a daily basis, there are good reasons to avoid market timing and focus on investing for the long-run. |
Related Definitions
Articles Of Interest
-
Buy-And-Hold Investing Vs. Market Timing
If volatility and emotion are removed, passive, long-term investing comes out on top. -
Choosing Between Dollar-Cost And Value Averaging
These are two investing practices that seek to counter our natural inclination toward market timing by canceling out some of the risk. -
How To Avoid Common Investing Problems
Learn to overcome eight hurdles that can keep you from realizing the best returns. -
Evaluating Paid Investing Newsletters
There are many different newsletters available, and investors must decide which is most appropriate for their investing style. -
Financial Funds Provide Diversity ... And Risk
Sector funds can provide maximum exposure to financial industry stocks, but this benefit is a double-edged sword. -
Market Cycles: The Key To Maximum Returns
You need to understand the various phases of the market cycle to avoid bubbles and make the best investments. -
Jesse Livermore: Lessons From A Legendary Trader
Jesse Livermore's investing philosophy wasn't foolproof, but he's still recognized as one of the greatest traders in history. -
Can I sell mutual fund shares below their minimum intial purchase amount without being penalized?
Yes. You can freely buy and sell shares of a mutual fund regardless of any requirement for a minimal initial purchase amount or the application of a redemption fee. In this sense, the investment ... -
Market Timing Fails As A Money Maker
This strategy is popular, but can you do it successfully? -
Would You Profit As A Day Trader?
Market timing is surrounded by controversy, but does it work?
Free Annual Reports