About Stock Market Timing
Stock market timing is the attempt to buy low and sell high. It is, for most practitioners, a daunting task. It is half science and half art.
The concept is to buy when the stock market is depressed thereby picking up stocks at bargain basement prices and later selling them at close to there cyclical high. Hence, if applied successfully, stock market timers will derive much better investment returns then buy and hold investors.
Stock market timing is also an attempt to mitigate the inherent risk in investing in the stock market. For example, when diagnosed beforehand, stock market timers can "side step" a stock market decline and protect their valuable nest egg, thus not suffering the stress associated with a decline in their portfolio's value.
Many stock market timers use a practice called “technical analysis” in their stock market forecasting. While I have never been convinced that analyzing stock charts to determine their future direction is very reliable, in that it does not take into account the multiple factors that affect stock prices; there are enough proficient technical analysts in the Financial Industry today, that most of the top Investment Bankers have staff that are specifically in position to offer their advice in this area to their Institutions.
Another form of stock market timing is performed by what are called Quantitative analysts. Quantitative analysts use mathematical formulas derived from stock market charts, the economy and other financial markets and factors such as investor sentiment in an attempt to determine more accurately the likely future direction of the stock market.
As a result of our research at TimingEquity we focus purely on the use of quantitative analysis. Specifically, we have developed our own sets of complex algorithms to help us navigate the ever changing and dynamic world stock markets.
It should be noted that stock market timing is by no means a fool proof strategy. Some attempts to sell before the stock market is projected to enter a concerted downward phase turn out to be the wrong strategy when the market instead turns higher. In this scenario a trading loss would be incurred. It is for this reason that not all investors are well suited to adopt a stock market timing strategy.
I often liken stock market timing to a game of soccer or any other sport. In the normal course of events in a sports season one would expect to incur a mixture between wins and losses. Usually, through skill, hard work and determination the best teams finish each season with more wins then losses. However, losses are still part of the game and are normally expected and accepted by even the most successful of teams.
Unfortunately, some investors cannot accept stock market trading losses in the grand scheme of things. Many become quickly dejected and quit stock market timing strategies just before a winning streak occurs. Therefore, it is important that investors are realistic about their expectations from any stock market timing strategy and embrace losses as being a minor set back in the overall game to beat a buy and hold investment strategy. In fact, our current live trading results have achieved a 75% success rate!
Click on the TimerTracked logo below. As demonstrated in the "real time" chart that is displayed after you click onto the logo, over the past few years our live stock market timing has far exceeded a passive buy and hold approach espoused by most banks and financial institutions. Feel free to experiment with the various drop down menu items available after you click on the TimerTracked logo. You can change Country’s and strategy’s easily with a click of the mouse. And then simply click on the “graph” button. After you click “graph” a chart will appear. On the chart the Country’s investment returns will be graphed. The blue and green lines demonstrate the investment returns one would have realized (not including commissions, interest charges, slippage or management fees) for the Country graphed using one of two (Long Only or a Long & Short combo) TimingEquity stock market timing strategies. The red line indicates the investment returns one would have realized adopting a buy and hold investment strategy in the broadly based S&P 500 Index over the same time frame.
Our TimingEquity stock market timing strategies can be successfully applied not only to the main US Stock Indexes such as the S&P 500 Index, Nasdaq 100 Index, Dow Jones 30 Index and the Russell 200 Index, but also to most International Stock Markets. Specifically we stock market time the following Country’s or region’s main Stock Market. In alphabetical order they are:
- Australia
- Austria
- Brazil
- Belgium
- Canada
- China
- France
- Germany
- Hong Kong
- India
- Italy
- Japan
- Malaysia
- Mexico
- Singapore
- South Africa
- South Korea
- Spain
- Sweden
- Switzerland
- Taiwan
- United Kingdom
Please choose your Country when graphing using the TimerTracked logo below.
I hope I have covered the main aspects of stock market timing for you. I invite you to visit our stock market timing website at www.timingequity.com for more information and check out our results vis a vis the leading indices as reported by independent stock market tracker TimerTrac.com.
Alternatively, if you would like more information on our stock market timing service and stock market outlook before committing to our strategies please subscribe to our free weekly Newsletter today by entering in your contact information below.
Please note: Our privacy policy is that we will not share your name or e-mail address with any third party for any reason other then required by law.
Jonathan Waller
President
TimingEquity Ltd
www.TimingEquity.com
(Click to verify)
