Stock market Timing

Most individuals are losing money, over time, buy and sell shares. A fundamental mistake most people make is the idea that the stock market is constantly increasing. Technically, but there are time limits for most people in the simple fact that none of us live indefinitely and depending on when the stock market goes through one of their patches can negatively affect our portfolio.If you are under 50 years (as examples) and the market goes through a difficult patch, more than likely you still have enough time for your portfolio to recover until retirement, provided that it never goes through another correction during your lifetime. How do you do if you are in your sixties, and the market corrects itself? Chances are you will never make up for the losses incurred.

A second mistake most people make when they buy stocks is that they never have an exit strategy. Probably more important than to buy a stock is knowing when to sell a stock. I learned long ago to never fall in love with a couple layers since it will eventually break your heart.You might have done your customer due diligence in researching a stock, but there are forces which can limit the ability of a particular stocks that move in a positive direction. Some but not all inventory is manipulated by Wall street. Many times a stock is over hyped by analysts and brokerage houses in an attempt to get people to buy stock and drive up the price. When inventory reaches a certain price, then Wall street insiders sell their shares and the rest of us are left with a stock starts to sink. The problem for most people is that they generally have a share after its done the great climbing only to then see price drop. There are old buy low-sell high mentality. a safe strategy to lose money on the stock exchange.I have read in more than one source that 70% of the stocks step in the direction that the overall market is, so if you have a stock with strong fundamentals and the market is falling, guess what? Your large stock decreases probably also. In addition, 20 percent of the movement of a stock is based on whichever sector it is (for example: transport, healthcare, Banking, etc.), so if your sector does your inventory, as well as not-well then probably.Finally, 10% of a stock movement is based on the true fundamentals of a stock, but these ground rules may be skewed by the administration of a particular company, as well as the brokerage houses, and analysts.Back in the mid-1990s were all stock picking genius.

It seemed all the layers that you purchased did nothing but go up. 2000-2002 which then the reality of most people who were in the stock market without an exit strategy, suffered severe losses. When many people swore never to play the stock market again. What happened in 2003? The market has risen again, but of course with a bitter aftertaste for stocks which are not received or received after the big run, eventually to either make very little money or no money at all. Buy low-sell-high strategy came once again comes into play.So, what to do? You can buy funds where "supposedly" money is professionally managed to avoid these corrections.

The problem here is twofold. One, these funds have leading charges that removes from your profits and two, perhaps more importantly, during the downturn from 2000 to 2002, equity funds generally also performed poorly.The problem we all face is that we are looking for a place to invest our money and after considering all the options seem to stock exchange offers better opportunities than other investment vehicles. If you are going to invest in the stock market, as I said earlier, you must have a strategy to protect your assets.An alternative timing the market.

You will read all that you do not have the time on the stock market. Truthfully, no one can predict how the market will go on any given day. However, there are different ways to see the trends on the market, either up or down (and sometimes sideways). When you are able to identify these trends can you have your money in the market when it comes along and have your money sitting safely on the sidelines when the market goes.Over the last ten years, I have looked at a number of stock market timing system. None of them will take you into the market in the exact bottom nor will they get to the top, but they get you in and out somewhere between so that you can walk away with a profit and most of them have you out of the market when it fix itself.

Active trading as this gives the average investor a huge advantage over the person who buys a stock then "hope for the best".My suggestion is to do an internet search for "stock market timing" and take a look at the various programs out there. Look at his track record, consider how many times have you switch in and out of the market (you don't want to jump in and out every few days) and the cost of the service.Find one that fits your investing and try out. You find that you will be able to sleep much better at night.

Serious stock market enthusiast only offers "one mans opinion."