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An investor who is timing the market attempts to increase profits by predicting market turning points. Timing the market involves buying at or near lows and selling at or near highs. An investor who is timing the market attempts to profit from short to medium-term swings in the market rather than profiting from a general increase in market prices over an extended period of time. Investors who are timing the market use many methods of predicting highs and lows, from fundamental analysis to technical analysis to more esoteric forms of analysis. Timing the market is valuable for swing traders, scale traders and many other types of traders. While the concept of timing the market is very attractive to many investors, there is little hard evidence that successfully timing the market has been an achievable goal for the majority of investors. |
