Market Timing Strategies

Market Timing Strategies

There are many ways to time the market, but three strategies work for most swing trades.

• First, enter a breakout or breakdown after it's under way.
• Second, wait for a pullback and enter near support/resistance.
• Third, buy or sell within a narrow range before the move begins.

Which is the best entry strategy for your next trade? Unfortunately, the right answer is never the same twice. Don't try to render entry rules into simple repetitive tasks. In truth, you need to plan each trade within the context of the

• current market environment,
• reward-to-risk ratio and
• chosen holding period.

http://alltradingideas.blogspot.com/2009/12/market-timing-strategies.html

Comments:

Useful for those hoping to profit from short-term trades.  However,  it is still not a foolproof method that can be consistently employed profitably each time.

For those investing in good quality companies for the long term, price is the most important issue.  Buy these at fair price or bargain prices, never buy them at high prices.