Market Timing Plays A Big Role In Your Strategies

Sometimes in the stock market, you can be completely right about all your analysis, hunches, guesses, criteria and still not make any money at all! Does this sound to you a bit farfetched? Well, as a matter of fact, I’ll admit that it does sound a bit strange to me as well and to many other people, but unfortunately that is the awful truth about stock markets; it is also why the stock market fascinates so many people. You might be wondering how can someone be completely right and still make no money whatsoever whilst trading in the stock market. The answer my friend is simple: market timing. To only be right is not enough; you have to be right AT THE RIGHT TIME. Have you ever read that common phrase “He was the right person at the right time?” Yes, that is the same with your trades and/or investments. Think about for a minute; let’s take a company’s view for example: is it any good if that perfect manager shows up to work in the company when there is no work at all or when, for example, the company is the middle of a big crisis almost facing bankruptcy and is not able to hire anyone? The company has to cut down costs so bad that they will not be able to hire this manager even though he is perfect: the timing was not right. So, when deciding on your trades and investments, always make sure that besides just checking all the facts to see if you are right about your strategy, make sure you check if the time is also right. If those two factors are not right, you might end up losing money and then left wondering what happened since you were so sure about your analysis and set up.