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THE PROFESSIONAL APPROACH IN TRADING

All of the world's greatest investors rely, to some extent, on market timing for their success. Whether they base their buy/sell decisions on fundamental analysis of the markets, technical analysis of individual companies, personal intuition, or all of the above, the ultimate reason for their success involves making the right trades at the right time. 

In most cases, those decisions involve extended periods of time and are based on buy-and-hold investment strategies.

Value investing is a clear example, as the strategy is based on buying stocks that trade for less than their intrinsic values and selling them when their value is recognized in the marketplace. Most value investors are known for their patience, as undervalued stocks often remain undervalued for significant periods of time.

To Time or Not to Time?

If your goal is to buy low and sell high, you are market timing. As noted above, it is very difficult to be successful at short-term market timing over an extended period of time. 

The average investor doesn't have the time (or desire) to watch the market on a daily basis and will be far better served by a focus on long-term investing instead of trying to guess the direction of the market on a daily basis. 

When the costs and risks are factored into the equation, even most professional investors prefer to stretch their investment horizons over a longer time frame. 

It is far easier to be successful if you purchase an investment and hold it until the price rises, regardless of how long it takes, than to purchase an investment at 9am and hope to make a profit just a few hours later.