Market Timer, You Know

Know your limits

Timers should use strategies that work best for them. There are aggressive timing strategies, assets and conservatives. A new market timer, jump right in time aggressive strategy may have a difficult time when he faces many trades in a market quickly. If you are conservative, using a conservative strategy. If you are a little more aggressive, use active strategies. During the volatility of the more conservative strategies markets are often better.

Jumping the Gun

Another concern is new timers who negotiate immediately. Entering a new position "before" a new high or low signal has been issued. Patience is key to successful market timing. You "can" tip losses, however. Markets have been around for hundreds of years. Wait and do it well.


Strategies and conservative assets are designed to manage risk in volatile markets, or on the side, and correctly put us in a bullish or bearish trend as they arise.

Aggressive strategies often make their biggest profits during bear markets. When everyone is losing, trades at low gain. The loss of 20% equivalent on the market at a 20% gain for the timer, which is 40% better than the market. But between these bear markets, small losses, and sometimes several small losses, they are a normal part of trading. aggressive strategies are often, but not always the most profitable over time. But if you let the strategy after a few losses, you will not be profitable when strategies are a strong bearish (or high). There is an old saying: "If you can not accept a loss, you will never succeed in the markets" If you think you will be concerned about different trades, or do not have the discipline to wait for the next bull market, or market. bear, use conservative strategies or assets.

arket timers should diversify. No strategy is perfect. Each strategy will default periods. This is a fact of trading on the markets.

If you have all your time funds allocated to one strategy, you're only hurting your chances of success. If you have the funds available, using various strategies. If you do not have available funds to diversify properly, maintain a conservative timing strategy.


Finally, there are those timers to wait to see if a signal is correct before following. This new capability reduces our risk management, integrated into strategies to function properly. In aggressive and active strategies, we accept small losses as the price never miss a trend, but prices are coming can be very different from an entry made two or three days later. After trading rules is extremely important. Any strategy has a bottom section with detailed trade rules. Here are some that all market timers should ask.

Know yourself

Looking for a synchronization strategy that will keep you in bull markets, and protect markets lower, with some temporary decisions that need to be addressed? If you follow the conservative strategies that are rarely traded, and go to the checkout to avoid possible long-term falls.

Gold, lead, the US dollar and the Small Cap timing strategies are individual timers in the industry and should not be used for a portion of your investment capital. Gold BUGS take note ... it is not a good idea to negotiate only gold fund. If you have access to sector funds, which are available in several fund families, but they are particularly excellent in families and Rydex Fund ProTimer sector Time is one of the best timing strategies already developed. If a sector was whipsawed again only a fraction is affected.

Sector funds when they often tend to move faster than the market in general, and in general more than anyone expected. The potential of the sector timer is huge. We consider this strategy an "active" calendar, but not aggressive. Sectors move money during the declines, bringing stability to the strategy.

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