You Cannot Time the Market
Monday November 24, 2008
Need proof that you cannot time the market? Take a look at the past two trading sessions. If you had sold out on Thursday when the world looked bleak, the economy appeared to be falling apart, and there was no relief in sight, you would have missed the massive gains on Friday and Monday, leaving you far underwater compared to the overall market. Stop trying to time your purchases and sales - you cannot compete with professionals. You can, however, beat them when it comes to finding value, holding it, and growing rich through reinvested dividends and the underlying growth in intrinsic value.
Comments
Yep. I have spoted 3 stocks undervalued (in my opinion), but I was trying to “time the market” and catch’em at lower prices. Without even have bought them, I had to see all of them rising strongly on monday over my first spoted prices (today they’re falling again).
After all, I can clearly see that my best option is to buy them undervalued and continue purchasing more stocks as it price falls (as long as I can). Them, sit over them and relax.