Always be cautious when using market timing
When it is May, the US markets turn to a playground for investors. There is a lot of money to be made. The market has held up from all the negative pressures that any person would have thought would subdue it. It has held up form the energy prices, rising interest rates and the negative influence brought about by US military meddling with overseas countries.
May is indicated as a month of profit. This is most popularized by the Hirsch organization who have published various calculations showing how profitable May is. They say that it is possible to make $536,000 from investing $10,000 from November to April. It requires patience because if you shall need to buy stock with $10,000 and wait until April to sell. This is a bearish market and you shall earn at about 5000% of what you invested. The organization said that the statistic was true since 1950. However, if you invest in the other period and wait from May to October, you will make a loss.
Commercials are professionals in the futures market who report how things are faring to the futures governing body. The commercials words are taken as predictions of what is to happen in the future. The commercials this time have news that show that the 30 year interest rate has an opportunity to fall. They say that the signs that are coming are those of a slowed down economy because of the problems being faced by the United States.
If you look at the housing bubble,
price of gold, political uncertainty, and many more other indicators, you shall see why you need to be careful. There is a lot that you will need to be cautious about. It is not just market timing and you leave it at that. Take more care in other indicators.
Warren Buffet, one of the investors in the 80’s and 90’s believed in a buy and hold system.
Warren Buffet, one of the investors in the 80’s and 90’s believed in a buy and hold system. It was a system that was easy to follow especially in those days when companies were just appreciating. He was an investor in the Coca-Cola Shares and he just held them without managing them. Nevertheless, the shares kept appreciating and he thought that this must be the best method of investing. However, this has not been possible ever since 2000 for the buy and hold people. Therefore, the best method has been to buy and sell infrequently taking advantage of price movements.
Much as there are so many people who have managed to make a kill in the stock markets for one reason or the other through using a good market timing strategy, it is important for you to realize that there is so much you will need to know about the timing strategies for you to make profits. Most people usually assume that market timing is so easy, well, it is not. There is so much involved and for you to be able to make things work for you, you must take into consideration all sorts of factors, wherein you can go so wrong. Always be careful, that is the golden rule of trading in the stock markets.