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By C.C. Collins
Using the proper benchmark is very crucial when it comes to evaluating your actual investment performance. The most meaningful benchmarks will be those most closely related to your objectives. The more clearly you can define your own objectives the better investing results you can achieve now and into the future.
The indexes most used for profitable market timing are the S&P 500 and the NASDAQ Even greater market timing potential is shown by the lesser known Wilshire 5000 index due to its market breadth.
Avoid making the huge mistake of assuming that the stock market is rational. Knowing just why the market is moving wil never be fully known but knowing that the market is moving and being in tune with the market is where the profits are made and your losses minimized.
Important clues about the market’s position even weeks away can often be learned by observing the stock leaders. It is the awareness of “leadership” that often gives some of the most useful market timing information when other indicators are not providing clear signals. There are periods in market activity where ambiguous signals become the norm for extended periods of time.
Those investors actually following a market timer seem to achieve the best results when strictly following the frequency of recommendations in addition to actual calls. More information found at http://www.markettimingstrategiesinfo.com .
There are a few traders who market time their trades and perform forecasting using cycle timing techniques. This is counter to believers in the Random Walk Theory or those who maintain that efficient markets do not allow for gaining an edge by simply studying past price data.
Fixed cycle timing analysis is said to deliver a great deal of market timing information including predictive ability. Users like to point out that it lends itself to be easily demonstrated and is easy to explain.
The most profitable results using this method has been experienced within the U.S. Financial markets rather than any other world markets or exchanges. The analysis of yield spreads for profitable market timing is also employed by a number of investors.
The best methods for market timing claim no predictive ability but rather a very sensitive market following approach. A few market timing techniques do claim some degree of predictive market timing by the use of non-public information.
A basic requirement for all investors who subscribe to independent market timing opinions or signals is reliable market timing information. Having immediate access to changes in market timing signals or stock picks is essential to all investors.
The longer term trends are the key to capturing the larger profits.The true basis of all profits is some measure of trend.
If you are consistently able to buy low and sell high you will be a successful investor. Without a doubt most investors do the exact opposite.
There’s no doubt that following a disciplined trading approach will make you money over the long term. You must let your profits run and cut your losses for consistent success.
About the Author: C.C. Collins is a retired financial services industry executive and owner of
bemarketsmart.com
. Investors will profit from what his research has uncovered at
stockinvestinginfo4u.com/StocksThatDouble
.
Source:
isnare.com
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