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 Home : US : Index Market Timing : Concept
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Market Timing Concept & Strategy
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The Stock Market
= Bull Markets + Bear
Markets
If you are in the right sector at the right time, you can make a lot of money very
fast. - Peter Lynch
The first rule is not to lose. The second rule is not to forget the first rule.
- Warren Buffet
Learn how to make money in bear markets, bull markets, and chicken market.
- Conrad W. Thomas
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Why Market Timing? |
All investments have their cycles, periods when prices rise and periods when they
fall. Studies have shown that for a typical stock, 70% of the price movement can
be directly attributed to the movement of the overall market. Therefore, it is extremely
important to stay on the right side of the overall market trend. It is important
to know the current phase of the market, specifically when it is ready to change
direction. The idea is to recognize the trend and to invest in instruments that
will move in synch with the general market direction.
To make money and be successful in the stock market, every investor needs a plan
of action based on a solid strategy that works in bull markets and especially in
bear markets.
Bear markets are inevitable and are a recurring part of the investing cycle
- You must be prepared to deal with them. This means you should take prudent actions
to avoid bear markets and not be invested in stocks when they occur.
We provide you, whether you are a beginner or more advanced investor, with easy-to-understand
and time-tested market timing system that work. We will help you to make more accurate
buy and sell decisions. We tell you what, as well as when, to buy and sell. No longer
will you get out at the exact bottom or in at the exact top while limiting your
risk at the same time.
Timing requires thick skin and iron resolve. Market timing is an important tool
for investors. When it is used consistently over long periods of time, timing can
dramatically improve returns while it reduces risk. |
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So What Is Market Timing? |
We define Market Timing as making investment buy and sell decision using a mechanical
or systematic trading strategy which employs one or more indicators and/or prove
strategies. The objective is to be invested in the market during up trends and to
be either in cash (or in a short position) during down trends.
Our Market Timing has the following Concepts & features:
- We applies sound economic concepts such as the determination of demand & supply,
money flow as the bases for researching the market breadth.
- We don't believe that historical pattern will repeated itself but we do believe
that the current sentiment will reflect what the market should go. An emphasis on
the current sentiment rather than historical pattern.
- We never predict the future movement! We don't forecast or target how high or how
low the market will go, we track the trend. We are trend follower, not trend forecaster.
- We provide the buy and sell signal. We show you when to enter, hold, and exit the
market. We are not only tell you when to buy(long) but also tell you when to sell(short
sell). So you can always be in the market whether the trend is a bullish or bearish.
- We helps you to maximize your profits and minimize your losses in both market directions. It makes possible for investors to achieve the returns they need at lower
volatility.
- We apply "Buy low sell high" and "Sell high buy low" strategies.
- We force you to trade with discipline, mechanical, emotionless approach to investing.
- We deals with all market directions - Bullish, Bearish, and Neutral Trend.
- We assumes that the prices movement are not random and are not effiient.
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So Is Market Timing A Better Approach Than Buy
And Hold? |
Lacking an investing strategy and blindly following the buy-and-hold approach can
lead to financial ruin. It can wipe out years of investment profits in a short time,
and it can take years for your portfolio to recover.
Is there a smarter way to handle your investment, to protect your profits, and to
steer clear of bear markets before they decimate your portfolio? Yes. The approach
is called market timing.
We have found that timing is successfully reducing market risk, by periodically
getting investors out of the market. Every day your asset are in a cash position,
that's a day they are not at risk in the market. If timing keeps you on the sidelines
25 percent of the time, timing has reduced your risk by 25 percent.
Market Timing cannot predict when the market will change direction. But, if you
use a reliable market-timing system and follow its signals, then you will exit the
market when it begins to turn down and you will re-enter the market when it begins
to turn up, all in time to maximize and protect most of your profits.
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So How Does Our MarketTiming Work? |
Our original aim of our proprietary market timing system was to provide general
market trend analysis in order to protect invested capital. This system employs
a complex and sophistical statistical, non-biased approach to investing that seeks
to maximize returns while managing overall risk.
This timing model was developed
through state-of-the-art proprietary research and analysis. It applies sound economic concepts such as the determination of demand
and supply, money flow as the bases for researching the market breadth. It is a system of measuring
the market trend by drawing a consensus from various market timing indicators and
models. Extensive testing of the several US and global stock markets were performed
over various time frames and market conditions. It has achieved outstanding performance
results without directional market bias.
Please note that our timing system can very effective in reducing market risk and
enhancing returns, yet it is not infallible. It has tested out to be accurate over
85% of the time since 1995. However, it will occasionally generate false signals
which can result in losing trades. Nonetheless, it has surpassed our wildest expectations
and has generated very handsome returns in both hypothetical testing and, more importantly,
real-time trading.
Based on market conditions, the system will generate a Buy, a Sell/Cash signal.
Once a signal has been issued, it remains in effect until a new signal invalidates
it. Our System is run daily after the market close, and we posted the results on
this Web site and email the daily reports to our members before 10:00 pm EST.
When our System issues a Buy signal on a particular index market, it means it is
time to buy the index using index fund or exchanged traded funds - establishing
a long position.
When the signal becomes a Sell, it is time to sell the index. You then sell your
investment and either keep the proceeds in cash (or in a Money Market fund) or sell
short the exchange traded funds, depending on the level of risk you are willing
to take.
When a Cash signal is generated, you should liquidate your current long or short
investments and keep the proceeds in cash or in a Money Market fund until a new
Buy or Sell signal is issued.
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So How Do You Use OurMarket Timing Strategy? |
Once you've become our member, you must first decide what strategy to follow whenever
our Timing System issues a new signal.
In order to help you with this task, We provide four different strategies versus
a Buy and Hold approach. Based on the level of risk you are willing to take and
the type of account you use to trade (regular account or retirement account), you
can choose which strategy is best-suited to you.
- Strategy
1: Long Only
This is the most conservative strategy we follow. It keeps you invested only when
our Timing System says that it is time to buy.
When our Timing System issues a Long signal, you buy exchanged-traded funds (or
index fund). Your position is said to be long.
When our Timing System issues a Sell or Cash signal, you liquidate your long position
and keep the proceeds in cash or in a Money Market fund.
- Strategy
2: Long Only With Margin
This is a more aggressive version of Strategy 1, where you are willing to invest
on full margin, therefore doubling your potential gains and losses. It keeps you
invested only when our Timing System says that it is time to buy.
When our Timing System issues a Buy signal, you buy exchange traded funds (or equivalent
investment) on full margin. Your position is said to be long.
When our Timing System issues a Sell or Cash signal, you liquidate your long position
and keep the proceeds in cash or in a Money Market fund.
Note: if you are using a retirement account such as an IRA or a 401(k), you cannot
invest on margin. Instead you should buy a leveraged index tracking mutual fund
that offers margin-like appreciation (see below).
- Strategy
3: Long And Short
This strategy is designed to make you profit whether the market is going
up or down. It keeps you invested whether our Timing System says that it is time
to buy or sell the index.
When our Timing System issues a Buy signal, you liquidate your current short position
(if any), and then buy exchange traded funds (or equivalent investment). Your position
is said to be long.
When our Timing System issues a Sell signal, you liquidate your current long position
(if any), and then sell short exchange traded funds (or equivalent investment) (short-selling
means borrowing the stock from your broker in order to buy it later at a lower price,
betting that the price will decrease). Your position is said to be short.
When our Timing System issues a Cash signal, you liquidate your current position
and keep the proceeds in cash or in a Money Market fund.
- Strategy
4: Long And Short With Margin
This is the most aggressive strategy we follow and the one with the
best track record, by far. It requires investing on full margin, therefore doubling
your potential gains and losses. This strategy is designed to make you profit whether
the market is going up or down. It keeps you invested whether our Timing System
says that it is time to buy or sell the index.
When our Timing System issues a Buy signal, you liquidate your current short position
(if any), and then buy exchange traded funds (or equivalent investment) on full
margin. Your position is said to be long.
When our Timing System issues a Sell signal, you liquidate your current long position
(if any), and then sell short exchange traded funds (or equivalent investment) on
full margin. Your position is said to be short.
When our Timing System issues a Cash signal, you liquidate your current position
and keep the proceeds in cash or in a Money Market fund.
Note: if you are using a retirement account such as an IRA or a 401(k), you cannot
short stocks or invest on margin. Instead you should buy leveraged index tracking
mutual funds that offer shorting and margin-like appreciation
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