Investment
Market Timing
Also known as: Market Prediction, Entry-Exit Timing, Active Timing
The strategy of making investment decisions based on predictions of future market movements.
Detailed Explanation
Market Timing involves attempting to predict market movements to buy low and sell high. While appealing in theory, market timing is extremely difficult to execute consistently, even for professional investors. Studies show that time in the market generally beats timing the market for long-term wealth creation. Systematic investment approaches like SIP help investors avoid the pitfalls of market timing by averaging out market volatility over time.