Newbie here! I've heard the quote along the lines of"It's not about timing the market, it's about time in the market". Why do people so often discourage timing the market? Are there no ways to predict a stock rising in price over the course of days, months or even within a year?
%% NO way to predict, CD847,but some weather forecasts are 80% accurate+/ Most millions are made in stock/ETFs markets , by market makers+ buy every month for 40years............................................................................ Back to my 50day moving average candlecharts. NOT a prediction + not bank insured.
People often discourage "timing the market" because they are unable to do it and most people fail trying. However, some successfully time the market as verified by their track records. Study those that are successful and those that fail and plan accordingly.
The market can’t be timed consistently, which is the risk. Even the most sophisticated traders (like RenTech, Citadel, Millennium, Virtu, etc.) must manage risk in order to succeed. Instead of trying to time the market, you should think about how you are positioned relative to your expectations, what you will do if the market moves against you, and how you will monitor your signals that form the basis of your decision making process.
Any time I make a trade, I am timing the market that it will go up from my entry if I am going long or low if I am going short. So in essence everyone that makes a trade is trying to time the market. Who knows, the next time I short the S&P, I could have gotten lucky and sold at the intermediary top. Use proper risk management to book profits if right and lose small if wrong.
Exactly. Most successful "market timers" are correct on their bets less than half the time, yet they make money.