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Successfully Time the Market - The Right Time to Market

There are a lot of books on the market on the topic of how to quickly become rich. Someone has said that one of the best ways is to write a book on such a topic and take advantage of the many people who are looking for get-rich-quick methods. Additionally, when the bull market is on the horizon, meaning that the market has reached its bottom and the economy is about to recover by experiencing rising prices, many investors rush to take advantage and ride the bull's back.

So, all these investors are eager to recover the losses they have incurred due to the previously falling prices. They embark on timing the market and start online trading as quickly as possible so that they find a way to beat the market and become rich again.

Confidence, ego or stable nerves, call it whatever you like. But in their attempt to restore their previous affluent position, many US investors forget the grey statistics that there is approximately 99% failure rate in beating the market. So, consider carefully, whether you have the emotional intelligence to jump back in and lose your money again.

What you need to actually beat the market and time it correctly is extreme emotional discipline. In reality, a lot of investors practice timing the market as a main occupation, but only a few and the luckiest manage to succeed.

In order to find out whether you have what it takes to time the market successfully, try to answer the following questions:

  1. Are you comfortable with sustaining loses?

    Are you used to losing and how do you welcome a situation in which the prices start to follow and your assets start to disappear? In timing the market the possibility of losing your money is as high as that of making more money. You should also become comfortable with such esoteric market timing terms as candlesticks, neural networks, astro-economic cycles, Gann Theory, Fibonacci, Elliot Wavechaos theory and other technical and quantitative systems.

  2. Are you comfortable with sustaining loses today?

    Timing the market is accompanied with daily increases and decreases of the prices. Thus, you will potentially sustain loses one day, which on the next day may be turned into big gains. You should clarify for yourself whether you will not be discouraged by today's losses, retrieve your money and miss tomorrow's gains. You should apply extreme day discipline and try to ignore individual losses or gains so that you build the necessary confidence and experience for becoming a successful market timer.

  3. Are you a decisive individualist?

    If you start to question your investment decisions from the very start, your success as a market timer is under danger. You should be brave enough to face the ups and downs of this field and overcome the fear of the potential market cycles. Stay focused on the system you have chosen, so that you can acknowledge it in its subtle details. There are many examples of too confident Main Street amateurs, who quickly lose their money and turn back with their tails between their legs to buy-and-hold investments.

  4. Are you OK with imperfections?

    Market timing is not represented by some sort of a perfect system under which you can buy for cheap and sell for high prices. On the contrary, what matters in the timing systems are probabilities. The system you have chosen will maneuver you between ups and downs, making exit and enter the market and enforcing you to figure out when it is the right or wrong time to do it. Your riming system will not guarantee you high sales or cheap buys. You should figure out for yourself whether you are capable of facing these imperfections.

  5. Are you able to shun the many pessimists?

    Americans are discouraged to practice timing the market and instead are encouraged to undertake buy-and-hold investments. Therefore, you will be constantly bombarded by the investment mass media by information of how financially unbeneficial timing the market is and how impossible it is to achieve great successes. All you have to do is to try to ignore them and practice stern self-discipline and emotional intelligence.

  6. Are you decisive and quick minded enough?

    Market timing requires keenness and decisiveness so that the right time for quitting or entering the market is not missed. Many investors fail in the correct timing of the market since they know that a particular action should be taken, but they are too uncertain and indecisive to do it.

If you have given positive answers to all of these questions, then you have what it takes to become a successful market timer. What follows is your commitment to the detailed acknowledgment of a particular system and concentration on it to achieve the successes you are striving to. Remember to stay focused on what you have chosen and believe in your experience and knowledge. Be risk tolerable and learn form your mistakes.

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