in this post as well as in upcoming posts, we are going to see and will explore how timing is everything is in the stock market and what are the tools and strategies to predict and time the market.
Timing is critical in every profession. Putting money is the market is no different, good timing in the stock market means the best profit. It’s most important for traders than investors. Professional traders earn their living doing best trade possible with the best timing, that why timing is everything in technical trading. Market timing is not about talking, much less about the interpretation of economics, but about listening. Many seek glory by predicting market crashes and bull runs, while the quiet ones pay attention to supply and demand, the true fundamental information about any stock.
Stock Market timing is the strategy of making buy or sell decisions of stocks by attempting to predict future market price movements.
The prediction may be based on an outlook of the market or economic conditions which can be done with the help of technical and fundamental analysis.
This is an investment strategy based on the outlook for an aggregate market, rather than for a particular stock.
While specific stock trading or investing timing takes on the outlook of company, fundamental of company and also most important technical price pattern of stock prices and it might be different than whole market timing. That why some stocks outperform in a bear market! we will see market timing tools and strategies in next post.