You Can't Time the Market

From: Exploiting the Myths

Summary

The myth that "you can’t time the market" is wrong—every investor is already timing it, just badly. Emotional decisions cost the average trader 5%+ per year, but a disciplined strategy can turn their mistakes into your gains.

Key Points

• •You’re already timing the market—holding, selling, or avoiding stocks are all timing decisions, whether intentional or not.
• •Emotional trading destroys returns—greed and fear lead most investors to buy high and sell low, underperforming by ~5% annually.
• •Win by being systematic—exploit others’ mistakes with rules-based trading, like Buffett’s value investing, instead of gambling on instincts.