Market Timing for Dummies is packed with expert advice on how to increase your profits and limit your risk. It helps you grasp the psychology behind market timing as you learn the basics of the method, analyze our finances, select the right software and equipment, and define your market trading style. You’ll get the hang of using technical analysis to identify trends and reversals, catch key turning points, and manage risk as you track general market trends, develop a feel for when a particular trend is vulnerable to change, and seize the moment!
Introduction:
Market timing is the most essential aspect of all trading and investing endeavors. If you think about it, timing is the key to success in many things you do. Try to hit a tennis ball without timing your stroke. Or try to run a yellow light before that camera goes off behind you without timing. So why is it that if you’re talking about getting married or buying a house, people say that “timing is everything,” but when you talk about market timing, people roll their eyes and tell you that it’s impossible? In fact, market timing isn’t just possible; it’s central to successful trading because whenever you mistime an entry or an exit to any trading or investing position, you run the risk of reducing your profits or losing money outright.
Indeed, because market timing is so misunderstood and maligned, it’s still an area of trading that few people practice — openly, anyway. Its shady reputation gives the successful timer an advantage over the financial planner, the retail broker, their unsuspecting clients, and their buy-and-hold strategy. As others hold on to falling stocks through bear markets and see their assets dwindle, you’ll be able to make money or preserve more of your bull market gains by applying the market timing techniques in this book. Am I guaranteeing you gains? Of course not; you don’t get guarantees on anything in life. You wouldn’t stay on a sinking ship in the middle of a hurricane, yet millions of investors decide to ride out massive bear markets and stock market corrections, pinning their hopes and their retirements on that old adage “the long-term trend is up.”
Being different could make you money if you consider market timing a viable alternative to the old Wall Street “buy and hold” swindle. If you have any doubts about considering market timing, remember that Wall Street has also given us things like portfolio insurance, the savings and loan crisis, the Internet bubble, and most recently the subprime mortgage crisis. Each of these little gifts from the guys who tell you that holding stocks for the long term is the only way to fly has also led to major bear markets where investors have lost billions by holding on to their investments too long.
Sure, the market came back. But in many if not all cases, the best that most buy-and-hold investors got was all their money back. Those who sold early in the start of the down trend had more money to invest when the market turned up. Better, those who sold the market short actually made money when the market fell. And because of new products, such as exchange-traded mutual funds (ETFs), short selling is as easy as buying shares of stock through your online broker with one click of the mouse.
This book is about staying with the overall market trend. It’s about knowing when to get in and out of your trading or investment positions with enough time to preserve more of your hard-earned money. Accomplish that, and when things turn around, you can start in a better place than someone who rode the bear market all the way down to the bottom and is only likely to get her money back — if she’s lucky enough and has enough time.
Contents:
- Becoming a Market Timer
- Peering Inside the Mind of a Market Timer
- Preparing Yourself and Your Finances for Timing
- Charting Your Course: The Market Timer’s Edge
- Timing with the Reports That Move the Markets
- The Seasons and Cycles That Infl uence the Markets
- Digging In to Trends, Momentum, and Results
- Timing with Feeling: Making Market Sentiment Work for You
- Timing in the Real World: Examining a Sample Trade
- Timing the Stock Market
- Timing the Bond Market
- Timing Foreign Markets
- Timing the Metals, Heavy or Not
- Timing Commodities: Making Money Down on the Farm
- Timing Currencies and Related Markets
- The Timer’s Dream: Sector Investing
- Timing Financial Service Stocks
- Timing the Technologies
- Timing the Energy Sector
- Timing the Health Care Sector
- Ten Game Savers to Know and Trust
- Ten-Plus Awesome Resources
Market Timing for Dummies By Joe Duarte pdf
