TradeAlmanac
Sign in

Market timing

Trying to step in and out at good moments instead of staying invested. It requires two correct decisions in a row — when to leave and when to come back.

How to read the number

The difficulty is not the first decision but the second: the exit usually happens on bad news, and the return has to be made while the news is still bad.

When the metric lies

Also known as: timing the market

Related terms