4 ms·
The good ol' market timing strategy. ;)
by kspaans 10y ago
The good ol' market timing strategy. ;)
- wtvanhest 10y agoI wish there was a way to help people understand how bad market timing is. No amount of explaining will help.
- kspaans 10y agoThere is! :D http://qz.com/487013/this-game-will-show-you-just-how-foolish-it-is-to-sell-stocks-right-now/ http://qz.com/487013/this-game-will-show-you-just-how-foolis... It starts at a random point in the stock market over the last 10 years or so, and you get to sell once and buy once. I tried 3 or 4 times when I first found it and only beat the market once.
- sfifs 10y agoI did this as a Monte Carlo simulation on the Indian stock market and concluded actively managed funds and systematic investment plans are basically fleecing investors. I subsequently only do passive index funds or buy options if I want to take a risk
- deleted 10y ago[deleted]
- tormeh 10y agoMarkets are very short-term, though, so you can time the market. It's just hard to time it exactly. All investors want to sell 5 minutes before the crash. It's impossible for a normal person. However, investors generally don't want to sell 5 months before the crash. On many occasions it has been widely known that something is a bubble, but people keep investing in that thing because they expect the bubble to grow a little more before it pops. If you're willing to watch the market grow for months after you've sold then I think it's possible to time the market. This is not professional investment advice, btw. It's somewhat outside of orthodoxy. I would do my own research before trusting me.
- wtvanhest 10y agoThis is simply not true. It is basically never widely known when there is a bubble, that is why there is a bubble. There are lots of false positives and false negatives. No one has successfully timmed the market over a long period of time.