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	<title>Effective Stock Trading &#187; stock market timing</title>
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		<title>Is Stock Market Timing Accurate?</title>
		<link>http://www.effectivestocktrading.com/is-stock-market-timing-accurate/</link>
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		<pubDate>Fri, 14 Aug 2009 22:13:29 +0000</pubDate>
		<dc:creator>Tony</dc:creator>
				<category><![CDATA[Stock Trading Systems]]></category>
		<category><![CDATA[Is Stock Market Timing Accurate]]></category>
		<category><![CDATA[magical crystal]]></category>
		<category><![CDATA[market guru]]></category>
		<category><![CDATA[market timers]]></category>
		<category><![CDATA[stock market timing]]></category>
		<category><![CDATA[stock research]]></category>
		<category><![CDATA[subjective sense]]></category>
		<category><![CDATA[timing the market]]></category>

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		<description><![CDATA[Is stock market timing accurate? That is a question I&#8217;ve seen asked more than once.� The answer to the question is both yes and no so let me explain exactly what I mean. Firstly, accurate is being used in a subjective sense in the question. If stock market timing were completely accurate and we all [...]]]></description>
			<content:encoded><![CDATA[<p>Is stock market timing accurate? That is a question I&#8217;ve seen asked more than once.<span style="mso-spacerun: yes;">� </span>The answer to the question is both yes and no so let me explain exactly what I mean.</p>
<p style="margin: 0in; font-family: Calibri; font-size: 11pt;">Firstly, accurate is being used in a subjective sense in the question.<span style="mso-spacerun: yes;"> </span>If stock market timing were completely accurate and we all had access to this information then we&#8217;d all be retiring very, very rich.<span style="mso-spacerun: yes;"> </span>In fact, if stock market timing was completely accurate there would be no need for the thousands of types of mutual funds because there would be no need for diversification.</p>
<p style="margin: 0in; font-family: Calibri; font-size: 11pt;"> </p>
<p style="margin: 0in; font-family: Calibri; font-size: 11pt;">No person or persons have any magical crystal ball into the workings of the stock market and can predict with pinpoint accuracy were the markets will go next. Many would-be market timers paint very broad strokes with their stock research brushes.<span style="mso-spacerun: yes;"> </span>So broad in fact that even though the market may eventually go in the direction they predicted it would still prove difficult to profit based upon that prediction. <span style="mso-spacerun: yes;"> </span>For instance, if some stock market guru predicts that the Dow is going to go up 4000 points then many investors may purchase stocks. <span style="mso-spacerun: yes;"> </span>If, however, the market plunges 5000 points before that time many investors will have abandoned their positions at a tremendous loss.</p>
<p style="margin: 0in; font-family: Calibri; font-size: 11pt;"> </p>
<p style="margin: 0in; font-family: Calibri; font-size: 11pt;">So in the above example of someone asks if stock market timing accurate, then the answer would be in this case &#8220;eventually&#8221;.<span style="mso-spacerun: yes;"> </span>In the stock market there is a tremendous difference between being able to time the market accurately and being able to profit from timing the market.</p>
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