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Stock Market Trading Signals Market Timing in Practice
Markets have ups and downs and the common wisdom is that you buy, hold, diversify and absolutely make sure that you get the pathetic return of SPY 7-8% average per year, with draw downs of 20%, 40% at times. Sounds simple, right? After all, stock market returns 8% on average. What they forget to tell you is that stock market has long periods of time when it is depressed after a crash and does not get back for 10, 20 years. When you hit one of those periods, average return of the market does not matter. As far as your investments are concerned, you got the short stick.
We have partnered with Sector Timing Report to help you the right sectors to invest at the right time, and avoid the sectors that are likely to suffer a downturn.
Avoid Market Downs
Proponents of buy and hold strategy argue that if you are not in the market, you miss the up days and most of the market gains occur in these few days. Yes, but they forget to tell you that if you are not in the market, you will miss down days also.
Investing is not gambling. We need to utilize the tools and data we have to increase the odds in our favor. If we can stay in the market in the days it goes up and stay out in the days it goes down, then it would be ideal. That is not realistic, but we can certainly try to increase the probability that we get it right by utilizing technical analysis and mechanical trading.
A Service to us All - Timing Signals
Too many choices. Not enough time to do the research. Too frequent trading with high trading costs.
Who wants better trading results in less time? You do. You've got enough to do without having to figure out what sectors are hot now and when they are cooling off.
You've got other priorities than to pore over the financial results of individual companies to decide where to put your trading dollars now.
Now that many investors have experienced the catastrophic and damaging effects of a bear market on their own investment portfolio, people are beginning to see that remaining invested in a bear market can actually increase the volatility and risk of their own investments. In addition, the psychological pain associated with watching a lifetime of hard-earned investments substantially decrease in value over a sustained period of months can take a damaging toll on confidence levels and one's own general outlook on the financial future.
Practitioners using market timing signals saw the bear market coming and were active before significant declines took hold in the general market. Market timers that practiced some type of market timing system or strategy were able to see these early warning signs and were able to switch into cash or other asset classes. As the bear market took hold, market timing signals also began to highlight a new emerging trend in bonds and treasuries. Market timers with higher risk tolerance levels acted on these signals and took short positions on the market to further capitalize on the emerging bear market trends. The bottom line is that market timing signaled when to get out of the market, and acted as a defensive portfolio strategy mechanism to reduce risk.
Stock Market Timing Systems
Market timing preserves capital. Practicing a simple market timing system can help preserve your portfolio capital during major market downturns. Acting on these timing signals and selling into cash or treasuries can preserve a lifetime of gains while you ride out the bear market storm with your holdings in less volatile investments.
Stock market timing can reduce portfolio risk
Having the ability to avoid or limit exposure to bear markets that plummet 50 - 60% in value over the course of a year can substantially reduce the level of volatility and market risk inside your portfolio over the long term.
Market timing signals can reduce financial worries
Nothing is more painful that the watching a lifetime of savings disappear. Market timing signals can help avoid the psychological pain associated with major erosions of portfolio values
Stock market timing increases consistency of returns over time
Diligent practice of market timing and asset allocation can help increase the consistency of portfolio returns over time by minimizing the impact of long-term declining markets.
Market timing acts as a secondary confirmation
With most successful market timing systems based on quantitative data-driven models, they can provide a neutral secondary confirmation source on market trends that are free from human psychological and emotional bias.
Market timing can be practiced with a wide range of investments
Popular investment vehicles for market timing include ETFs, mutual funds, index funds, forex, commodities, futures, and stocks.
Market timing allows you to capitalize in bull and bear market trends. With the rise in popularity of many inverse ETF funds you can easily short entire sectors or markets by purchasing an inverse ETF.
SIGN UP NOW! DON’T DELAY TO CONTROL YOUR INVESTMENT
Sign up with Sector Timing Report to hand pick the right sectors to invest at the right time, and avoid the sectors that are likely to suffer a downturn.
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