Stock Market Timing is one of the most important skills to master when it comes to making any stock market investment.
Especially when you consider that about 70% of the stocks in the market will track similarly to the overall market performance.
So being able to answer some important questions about the underlying market before, and during investing your money in the market, can give you some significant improvement in your stock market trading results.
By measuring the market with well defined methods, it’s possible to know the following:
- Which Stock Market Sectors are the strongest and weakest to invest your money.
- Which stock market strategies to use.
- Whether it’s a good time in the overall market to enter this position.
- When is a good time to lock in some profits.
Sector Stock Market Timing
Because the share market is broken up into many industry or business related market sectors, it makes it easier to identify performing stocks, by tracking market sectors & indexes, using sector stock market timing methods.
With money flowing in and out of the many different sectors of the stock market every hour, its possible to recognize and trade the best performing sectors, or even identifying the best stock opportunities within those performing sectors.
Some of the information that can gleaned using Sector Stock Market Timing methods:
- Target the strongest, or the weakest sectors & stocks.
- Identify ideal market entry or exit points within overall market.
- Spot new emerging or weakening market trends.
All traders are aware that the chance of capital loss is real, but many do not consider trying to overcome opportunity loss, so being able to filter the non-performing sectors of the Stock Market, you can focus on investing your money in the best opportunities.
Sentiment Stock Market Timing
Catching the market trends is one thing, but using Sentiment Stock Market Timing methods to discover clues to pending market reverse points can be really powerful information, especially if you have profits to lock in.
By using Stock Market Timing methods on sentiment indicators it is possible to recognize points of overall complacency within the market, where uptrends may run out of steam and reverse. This type of clue can serve as a caution to tighten stops, or take profits, rather than responding after the market has moved unfavorably.
Likewise spotting reversal points of steep selling downtrends by identifying extreme levels of fear, can be equally as valuable.
Learning Stock Market Timing from an Expert
For those wanting to learn some powerful market timing methods, I would recommend learning from an industry recognized market timing expert.
Someone who I believe fits the criteria is Price Headley from Bigtrends, who has been a mentor of mine. At the moment he is offering free access to a 60-minute Market Timing Educational video, which is small part of his coaching course that is offered to his paid clients.
So if this sounds of interest, simply sign up to his free Bigtrends Coaching Kit to get instant access to the following:
- BigTrends Complete Market Timing Tactics Video
- BigTrends Technical Analysis Guidebook: Essential Trend Trading Techniques