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Thinking About Stock Market Timing - Mike Swanson (09/15/09)

Everyone dreams of playing the stock market and hitting it big in the 50 hottest stocks; however, very few people will experience that. The stock market is unpredictable, and it can either make you quite a bit of money, or cause you to lose your money. Stock market timing is a very important part of the game.

Having proper timing is very important. Stock market timing can either make you or break you. If you cash out too soon, you could lose money. If you cash out too late, you will lose money. You have to find that perfect point in the middle that will allow you to cash out and make money.

So, how do you know when to do this? Well, no one knows for sure. Almost all companies that are related to this industry have developed their own systems for stock market timing. They can only advise you on what to do. You must remember that they, too, are only guessing; however, they are researched and educated guesses based upon former trends. Basically, there guess is still better than yours.

Most people play the stock market to make money for retirement, etc. They do not have the money to lose. It is utterly important that they do have the right timing so that they do not lose everything that they have worked hard for. Having direction from a company who has developed a can have a tremendous impact on one's portfolio; however, these timing systems that have been developed are certainly not perfect. They are only used to serve as a guide.

Reality is that nobody can accurately predict what the stock markets are going to do from day to day or from year to year. Stock market timing systems are only there to serve as a guide for the investors.

One should not rely too much on the timing systems. In other words, do not put all of your eggs in one basket. Play it smart and play it safe.

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Hello. My name is Mike Swanson. I’m the best-selling author of the book Strategic Stock Trading. In a former life I used to run a hedge fund from 2003 to 2006 that generated a return of over 78% during that time frame. In fact it was ranked in the top 35 out of 5,000 hedge funds in 2005.

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