Tuesday, May 4, 2010

The Importance Of Timing In Investing

If you believe me, it is true that “timing is everything” in investing strategy. It is even more true for politicians, actors, comedians, singers, and athletes. They all rely on timing as a key skill in their success. Putting yourself in the right place at the right time is a crucial part of the skill for some kind of success.

Successful investors create their own luck, take calculated risks, and put themselves in situations where they can take advantage of investment timing opportunities. Investment timing can make or break the investment opportunity. Many people have haphazardly entered the stock market at the wrong time and made very hugh losses or little profit.

The best investment advice is to continually develop your investment timing skills and be able to recognize opportunities as soon as they arise. Think laterally, broaden your perspective, and learn how to predict how local and world events will shape things financially. Then take calculated risks based on those factors. If you can get comfortable with this new kind of thinking, then you will benefit from investment opportunities that others miss.

A good case study is when I bought index linked unit trust fund when the market at its lowest and sold it when the market was high. I made a profit of 44% within 9 months. Now I am heavily invested in the same fund and hope to make another killing.

"What is being said is that the market makes all the decisions. Our only decision is to listen to the market and obey its signals. Always and without exception. Remember the market never lies. It is only we lie to ourselves." The Zen Of Trading

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