What is Market Timing?


Market timing is an attempt to use technical or any other market analysis to accurately forecast or prophesy the most possible future prices trend of securities or indexes, whether long-term or intra-day, consistently and persistently. It could be based on various economic, politic or stock market information and indicators, for making a trading decision when to buy or sell securities. in most cased timing of the market is based on a Technical analysis of market data.

Do not to get confused you have to understand that market time is a process of forecasting, technical analysis is a tool used and trading system is a final product.

Overall, market timing could be based asset allocation, technical analysis, charting, momentum investing, and other theories and techniques. In our trading system we use technical analysis of volume price and volatility to time the Nasdaq 100, S&P 500 and DJI indexes with the goal of generating liable trading signals to trade QQQ, SPY and DIA Exchange Traded Funds (ETFs).

Attempt to predict the future prices trend is a problem that has attracted the investors since the very beginning of financial markets. Accurate predictions of the price movements may help in fast fast and substantial capital increase.

Well developed market timing strategy gives to the investors the opportunity to avoid major market price price fluctuations and profit on the confirmed and strong price movements. On the other hand you may find numerous opinions that using any market-timing tool is a waste of time.

As every investor has his/her own unique set of technical indicators and specific way of their analysis, each trader has his own market timing strategy when it comes to making money in the market. Many technical traders attempt to improve their trading performance by timing the market (indexes) and adjusting their portfolio in accordance to predictions about the entire market or a specific market sector.

Studies show that investors can still outperform a buy-and-hold strategy, even if they don't participate in the strongest times, as long as they escape major market declines. Every investor has his own market timing theory when it comes to making money in the stock market. Many analysts attempt to improve their performance by timing the market and adjusting their portfolio according to predictions about the market or specific sectors. It is obviously, that when investors can avoid weak price trends and participate in the strong price movements, they can experience better returns when compared a buy-and-hold strategy. However, there are still many investors that still relay on the buy-and-hold strategy.

About our QQQ Market Timing Model

Our QQQ Market-Timing is a method in which one would use past prices, volume levels, and other market-generated data to accurately forecast the future direction of the QQQ stock. Whether it's long-term or intraday, our QQQ Market-Timing has consistently given profitable returns. QQQ Market-Timing is based on various economic and stock market indicators, which help in deciding when to buy or sell QQQ. In other words, market- timing recommendations are based on the technical analysis of QQQ and current of market data.

This trading system is not 100 percent mechanical as it does have a level of subjectivity. The basic technology behind this trading system is MarketVolume and its system of volume technical analysis. MarketVolume's charting technology allows our analysts to make informed, but still somewhat subjective, decisions as to where the market is going in the mid and long-term, and to make a trade based on the results of that analysis. Also keep in mind that this system incorporates other forms of technical analysis.

Every investor has his own market timing theory when it comes to making money in the stock market. Many technicians attempt to improve their performance by timing the market and adjusting their portfolio according to predictions about the market or specific sectors. Obviously, if investors can avoid weak periods in the market and participate in the strong, they can also experience superior returns over a buy-and-hold strategy. What is important is that studies show that investors can still outperform a buy-and-hold strategy, even if they don't participate in the strongest times, as long as they escape major market declines.

RISK STATEMENT: The trading of stocks, futures, commodities, index futures or any other securities has potential rewards, and it also has potential risks involved. Trading may not be suitable for all users of this Website. Analyst research available through this Website does not constitute a recommendation or a solicitation any particular investor should purchase or sell any particular securities. Past performance is not necessarily an indication of future performance. You absolutely must make your own decisions before acting on any information obtained from this Website. More...
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