- Stock Market

 

 Nasdaq in a month?

Up more than 5% 
Stay the Same 
Down more than 5% 
I don`t know 

 

 
Stock Market Timing


"

Stock Market timing is one of the best ways to control risk. It's not the only way, but it's one strategy that's followed by a lot of investors. Too many investors look at it as a way to beat the market but professionals look at it as a way to control risk."


  • Market timing is any attempt to use past prices, volume and other market-generated data to accurately forecast or prophesy future prices of securities or indexes, whether long-term or intra-day, consistently and persistently.
     
  • Securities timing includes asset allocation, technical analysis, charting, momentum investing, and quantitative analysis using neural networks, genetic algorithms, artificial intelligence (AI), fuzzy logic, chaos theory or other non-linear techniques.
     
  • Timing is based on various economic or stock market indicators, for deciding when to buy or sell securities.
     
  • NASDAQ timing, QQQQ timing (NASDAQ: QQQQ), S&P 500 timing (AMEX: SPY), Dow Jones timing (AMEX: DIA) based on the volume of all index constituents works very well for timing index shifts.
     
  • During bull markets,  timing usually underperforms. When the market is going up, the only thing timing can do is tell you to be invested; that doesn’t give you any advantage over buy-and-hold. But of course no bull market goes up in a straight line for very long. And often when there’s a downward blip, it causes a sell signal, and you’re out of the market.
     
  • Every investor has his own stock market theory of timing when it comes to making money in the stock market.
     
  • Many attempt to improve their performance by timing the market and adjusting their portfolio according to predictions about the market or specific sectors.
     
  • Precisely because prices are efficient integrators and anticipators of information relevant to security valuation, they also serve as high-quality inputs for reliable technical analysis models.
     
  • Very often market and mutual funds  timing based on the price sounds fine in theory but it seldom works in practice.
     
  • Market stock timing based on the volume of indexes works in majority of cases.
 


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7/5/2008 - SV1