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Glossary · PSX term

Market timing.

Market timing is trying to buy and sell based on predicting short-term market moves.

Definition

It is notoriously hard to do consistently, since missing a few strong days can hurt long-term returns badly. Many investors fare better with steady investing than attempting to time tops and bottoms.

Worked example

Selling everything expecting a crash, then missing a sharp rebound, is the risk of market timing.

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Material information
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