market timing


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Related to market timing: Late trading

Market Timer

A money manager who seeks a profit for clients from his/her own ability to predict when the market will climb and fall. That is, a market timer buys securities when he/she believes that they are about to increase in price and sells when he/she believes their prices will fall. A market timer may use technical analysis to discern future price movements.

market timing

The purchase and sale of securities based on short-term price patterns as well as on asset values. Some analysts use fundamental analysis to select the securities to purchase or sell; then they rely on market timing to decide when to trade those securities. Also called timing.
Is market timing best left to the experts, or can I use it when determining when to buy or sell securities?

To put it bluntly, the most important investment advice for the serious investor is that it is "time in the market," not "timing the market," that is the key to long-term successful investing.

George Riles, First Vice President and Resident Manager, Merrill Lynch, Albany, GA

Market timing.

Market timing means trying to anticipate the point at which a market has hit, or is about to hit, a high or low turning point, based on historical patterns, technical analysis, or other factors.

Market timers try to buy as the market turns up and sell before the market turns down. It's the anticipated change in direction rather than the amount of time that passes between those changes that's significant for these investors.

The term is sometimes used in a negative sense to refer to a trading strategy that aims for quick profits by taking advantage of short-term changes in securities' prices.

Market timers, sometimes known as day traders, trade electronically. They try to buy low and sell high by taking advantage of second-to-second or minute-to-minute changes in the financial marketplace. They base decisions on information such as a forecast on interest rates or a sell-off in a particular market sector.

References in periodicals archive ?
This new stock market timing system has been engineered to trade in the following ways: (a) long only, (b) long and short, and (c) double-leverage long and single-leverage short.
Although very difficult to discern, more technical fund disclosures may reveal tell-tale signs of market timing.
The cost of late trading and market timing to long-term investors in mutual funds is unclear; however, it does not appear that these abuses affected pension plan participants more than other investors.
NASD officials say market timing drives mutual fund costs up and waters down profits for those investing long term.
What takes the matter from sheer sloppiness to possible discouraging fraud is when the fund ignores its policies and actively facilitates market timing, often for a quid pro quo.
One internal memo marked "confidential" to Invesco chief executive Ray Cunningham is said to have admitted that market timing in the firm's funds was "at high levels".
Market timing may not be illegal, but it is certainly unethical, because it hurts long-term shareholders; as a result, the practice is discouraged by most funds.
Bello and Janjigian [2], using the Treynor Mazuy [17] model, document positive and significant market timing abilities for mutual funds during the 1984-94 period.
will pay a fine of $250,000 for supervisory and other failures in connection with improper market timing of mutual fund shares from January through September 2003.
HOUSTON, May 21, 2013 /PRNewswire/ -- The MIPS Timing Systems, LLC flagship stock market timing model(MIPS3/MF) was ranked #1 in performance by TimerTrac.
Beat the market; win with proven stock selection and market timing strategies.
MFS), a subsidiary of Canada's Sun Life Financial, the oldest mutual fund company in America, came under charges of market timing, Vitale, Caturano rode it through, while keeping its clients up to date about developments in the case.