As from April 2013 my Journey in Investing is to create Retirement Income for Life till 85 years old in 2041 for two persons over market cycles of Bull and Bear.

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Friday, 24 October 2014

Timing the Market???


One Person said that one of five common mistakes stock investors made is Timing the market.


Chun bo???


For long only retail investors, are you still waiting for Bear market to become rich in stocks?


Mistake meh!!!

Don't anyhow say!!!




8 comments:

  1. Hi CW,

    I think no one, even the regular and fully vested school, simply buy on the full moon...

    But I think he meant, when you find something cheap and good, just buy, no need to wait and think:" can get cheaper a not"

    But if not cheap, waiting is not timing the market

    ReplyDelete
  2. CW8888 : The fighting of "Timing The Market" vs "Time In The Market" school of thought? ;-)

    ReplyDelete
    Replies
    1. No fighting in me.

      I practise both school of thought through long-term investing and short-term trading. LOL!

      Delete
    2. CW,

      Confirm 1 person never read your Masthead.

      LOL!

      Delete
    3. In my own personal view,

      timing your purchase and sales; and also be a little bit greedy are okay.

      but take note of missed opportunities; and also being overly greedy which can be your bad blind spots.

      Penny wise pound foolish indeed.

      Delete
  3. Market Timing?
    Sure you can & you can not.

    Eg (1)

    The big problem with timing the market isn’t always the system (but it certainly could be). The big problem is you. If you rely on your gut feelings to time the market you are breaking Rule 2 because you are really just trying to predict the future. If you bail out when the going gets tough, you are breaking Rule 1 – you are changing your timeframe. If you don’t do your homework and don’t find a good approach with a long track-record of success, you’re breaking another rule…I just don’t know what number it is…
    I am not trying to sell you on market timing. I am pointing out that if you take a methodical, adult approach and if you are willing to underperform for some time periods, it can work out very well for you in the long-run.

    Eg(2)
    As Buffett once wrote:

    “We try to *price*, rather than *time*, purchases. In our view, it is folly to forego buying shares in an outstanding business whose long-term future is predictable, because of short-term worries about an economy or a stock market that we know to be unpredictable. Why scrap an informed decision because of an uninformed guess?

    EG (3)
    How should retail investors invest?

    Ideally, they should buy when all others are selling, ie. buy after the stock market crashes. If they can do it, they will do much better than those who try to time the market regularly. But it is not easy to follow such a rule because nobody knows where the bottom is. I think about 90% of investors lose money. So this game is not for everyone. During a bull run, we all think that all have made money. But when the crash comes, 90% of investors will know where they stand.

    ReplyDelete
  4. 3M's : Method, Mind and Money Management.

    Timing the Market Not by method but through Money Management.

    Buy slowly by batches and by intervals.

    Sell slowly by batches and by intervals.

    No perfect timing but still need to Time the Market. No?

    ReplyDelete
  5. Yes, where can you find something perfect. Nothing is perfect in this world, doesn't means you stop trying to perfect what you like doing.
    Pyramid up or Pyramid down need trying to perfect too.

    ReplyDelete

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