Can you time the market?
Timing the market or time in the market, which is more important in your opinion?
Some gurus use chart or trend to justify that they can time the market accurately (buy low sell high). They will show you portfolio that hugh profit is earned. What they didn't show you is they made bigger losses in other hidden trades.
You can't get rich by timing the market which usually will end up sell low and buy high.
Bottom line
As retail investors, the probability of
Some gurus use chart or trend to justify that they can time the market accurately (buy low sell high). They will show you portfolio that hugh profit is earned. What they didn't show you is they made bigger losses in other hidden trades.
You can't get rich by timing the market which usually will end up sell low and buy high.
Bottom line
As retail investors, the probability of
losing money is high when you try to time the market. Hence to avoid emotional trading like panic sell or fomo to buy the dip, it is best to DCA (dollar cost averaging) or time in the market ie buy when share price is rising and falling. If the company's fundamental is sound, investors who can hold will get positive return in long run. DYODD
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I reflected trading experiences by writing journals. My comments are for educational purposes not financial advice.
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GotLongTerm : Lol way to shit on timing the market. Investors who buy high and sell low don’t trade anymore. Flip the buy and sell around on the left picture and make it a decent argument.
bullrider_21 : Many people who say you can't time the market are FA people. During the financial crises (now, Dot-Com Bust, 2008 Recession, etc), many stocks dropped 50%- >90%. Some have even went bankrupt. Should you continue to hold stocks if the prices keep dropping or are you better off getting out? Time in the money is fine if there's a bull run, but it can't last forever.
bullrider_21 : TA people can read charts. So they buy and sell at swing lows and highs respectively. For FA people, they can't read charts and are more guided by emotions. They are more likely to buy high and sell low. By spending time in the market, many have seen their stocks dropped more than 50% in prices.
During the bull run, you just buy the dips because the market always recovers. But buying the dips is dead now. The bear market is here.
ZnWCOP bullrider_21: Thanks for giving me a different perspectives.
Giovanni Ayala : Not a Good Strategy
Ryebz81 Giovanni Ayala: which one?
bullrider_21 ZnWCOP: NP
Trading Tradesman : the problem ls with this is that 1: there is not unlimited money to buy with. 2: someone will have to sell eventually. 3: markets can go through rough patches and some companies even end up delisting. so buying every single price and holding for new highs seems like a great plan, but it almost will never work out. Especially during a recession. Never apply time in the market to penny stocks, this is only a smart plan when it comes to growth stocks, strong companies, and stable plays. Never something that is high risk and might not have a future though