Market Timing
Despite what most people say, I do believe it is possible to time the market.
By saying this, I do not mean that I am able to get into the market at the lowest possible cost and get out of it when it reaches the ultimate high. Neither am I confident that I will be able to win all and lose nothing.
Rather, I see that it is possible to get in at a time when most people are feeling jittery and are starting to lose their confidence while a new uptrend is forming. Similarly, to get out of the market when the signs of topping shows up and the crowd is cheering away for their new purchases.
Unwittingly, I was able to avert a potential heartbreak during mid-August when most stocks fell under the pressure of the falling market. I was out by the start of the month and sitting on cash. Though I must say I was feeling rather silly for donating to the market.
I have been waiting patiently for the right time to strike since then. I thought I saw it last Friday. But consultation with the charts showed that the rally had failed just 2 days before.
Just yesterday, I was browsing through forums to while away my time when I came across a forumer who claimed that the rally has started last week. From his observation and postings, I reckon that we are using the same method to gauge the market.
I'm only a beginner where this method is concerned. I shall continue to monitor the market. Especially with the fall of 250 points on the DJI yesterday, the coming week should be pretty interesting for our local index.
By saying this, I do not mean that I am able to get into the market at the lowest possible cost and get out of it when it reaches the ultimate high. Neither am I confident that I will be able to win all and lose nothing.
Rather, I see that it is possible to get in at a time when most people are feeling jittery and are starting to lose their confidence while a new uptrend is forming. Similarly, to get out of the market when the signs of topping shows up and the crowd is cheering away for their new purchases.
Unwittingly, I was able to avert a potential heartbreak during mid-August when most stocks fell under the pressure of the falling market. I was out by the start of the month and sitting on cash. Though I must say I was feeling rather silly for donating to the market.
I have been waiting patiently for the right time to strike since then. I thought I saw it last Friday. But consultation with the charts showed that the rally had failed just 2 days before.
Just yesterday, I was browsing through forums to while away my time when I came across a forumer who claimed that the rally has started last week. From his observation and postings, I reckon that we are using the same method to gauge the market.
I'm only a beginner where this method is concerned. I shall continue to monitor the market. Especially with the fall of 250 points on the DJI yesterday, the coming week should be pretty interesting for our local index.
Labels: Stocks
posted by thelonetraveller at
9:48 pm
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