Tuesday, December 14, 2021

Market timing is an investing strategy that involves predicting the movement of financial assets to make timely trades and maximize profits.

When you try to "time or beat the market", you're essentially buying a security with the expectation of selling it at a higher price in the short term.

However, since changes in a market trend can appear unexpectedly, there is a high risk of misspeculation and misjudgments. If you get out of the market when the market unexpectedly moves upward, you could miss out on significant positive returns.

Also, doing the necessary research and constantly watching market movements is extremely time-consuming and expensive.