Market Timing
Market timing is an investment strategy that involves making decisions about when to buy and sell stocks, bonds, mutual funds, and other investments. It is based on the idea that the timing of purchases and sales can have a significant impact on the overall return of an investment portfolio. Market timing strategies can be used by both individual investors and professional money managers.
History of Market Timing
Market timing has been around for centuries, but it has become increasingly popular in recent years. The idea of market timing is based on the belief that markets are cyclical and that it is possible to predict when prices will rise and fall. This strategy has been used by investors since the early days of the stock market, but it has become more popular in recent years as technology has made it easier to track and analyze market trends.
Market timing strategies can be used in a variety of ways. Some investors use technical analysis to identify trends in the market and make decisions about when to buy and sell. Others use fundamental analysis to evaluate the underlying value of a company or sector and make decisions based on that information. Still others use a combination of both approaches.
Table of Comparisons
| Strategy | Risk | Reward |
|---|---|---|
| Technical Analysis | High | High |
| Fundamental Analysis | Low | Low |
| Combination | Medium | Medium |
Summary
Market timing is an investment strategy that involves making decisions about when to buy and sell stocks, bonds, mutual funds, and other investments. It is based on the idea that the timing of purchases and sales can have a significant impact on the overall return of an investment portfolio. Market timing strategies can be used by both individual investors and professional money managers. For more information about market timing, investors can visit websites such as Investopedia, The Motley Fool, and Yahoo Finance.
See Also
- Technical Analysis
- Fundamental Analysis
- Portfolio Management
- Asset Allocation
- Risk Management
- Diversification
- Value Investing
- Growth Investing
- Momentum Investing
- Swing Trading
