| Much has been written about the virtues and dangers | | | | the results they want or could have enjoyed by |
| of active stock market trading, or "market timing." | | | | simply following the buy and sell signals they receive. |
| Most of the pundits and so called "experts" will tell | | | | Investors lack the patience to stick with their |
| you that stock market timing doesn't work, that it's | | | | system. Many investors are constantly in search of |
| dangerous, and that "buy and hold" is the best and | | | | the Holy Grail, a program that never loses a trade. |
| only way to invest. | | | | The fact is, no method will win every trade, and |
| But this conventional wisdom is patently untrue. Here | | | | investors without patience will find themselves |
| are the facts based on my research and extensive | | | | hopping from advisor to advisor with no rewards to |
| real time experience. | | | | show for their efforts. |
| If you want to be a successful stock market timer, | | | | However, there are a number of proven systems |
| you need three key elements: | | | | available that recognize these pitfalls and successfully |
| 1. A system that actually works. | | | | time the market to massive profits year after year. |
| 2. Discipline to follow the system. | | | | Anything you hear or read to the contrary is simply |
| 3. Patience to stick with the system long enough to | | | | not true. Wall Street has a vested interest in |
| make it work for you. | | | | opposing stock market timing because it is a threat |
| And it's tough to do all three. | | | | to their very existence. |
| Here's why: | | | | Investors have two choices. They can pursue the |
| Most market timing systems don't work. Or don't | | | | conventional wisdom of buy and hold and hope for |
| work consistently enough to be valid. Some will work | | | | the best, or the modern investor can educate himself |
| in trending markets but get slaughtered during flat | | | | and find a timing system with which he is |
| times. Most systems don't work in all markets. | | | | comfortable to protect and grow his wealth. There |
| Investors lack the discipline to follow a proven | | | | are a number of proven options available, but the |
| system. Once an investor finds a viable program, he | | | | absolute worst thing one can do is listen to the |
| or she needs the discipline to follow it. Sadly, some | | | | pundits who tell you that "stock market timing" |
| either can't or won't do that. When they let their | | | | doesn't work. |
| own judgment or intuitions interfere, they don't get | | | | Copyright 2006 Equitrend, Inc. |