Market Timing

Market timing is a process or strategy used by investors to buy or sell financial assets like stocks. It involves predicting the future price on the basis of factors such as market or economic situations. The results is a Fundamental or Technical analysis. It is therefore an investment strategy based on the general view of factors instead of the financial assets to e traded.

There are those who believe in market timing while others see it as gambling as the market is a mare chance and prices are random and cannot be predicted. This is due to the fact that timing cannot see the extension periods or the period a bubble will last. On the other side those who do market timing see it a trading process. They base their argument that predicting the future market is what the entire trading process involves. However, those who do not time the market prefer to buy and hold or re-balance their stock.

With the current technology development, some software developers and traders have come up with a market trading software to ease the process where it automatically executes trades on behalf of the trader.