2/15/2013

How you can be successful market timer

Today morning there was article about mutual fund timing and how it leads to under performance. Every week you will find similar kind of articles.

When it comes to timing there are two schools of thoughts. Some people are vehemently against it and they show variety of statistics to prove their point. There are others who fervently believe in market timing.

Obviously market timing is not for average investor. Average investor lacks the skills, knowledge , and inclination to learn timing in depth. But if you are not one of those person and willing to put in effort, you can find strategies which can beat the market.

The trick in market timing is in finding indicators which work best in finding turns. Market breadth based indicators are the best way to time the market. Breadth flips and breadth thrusts are very reliable signal both near bottom and top.

If you are really serious about market timing and your returns, study market breadth in detail and you will find several ways to build reliable timing techniques. In our 401k I have been using breadth for timing for last 12 years and have developed Stockbee Lemonade Strategy for 401k for that. It is extensively used by Stockbee members and past members. For example last year our Lemonade Strategy for 401k was up 17.6% using timing and fund selection using very limited number of fund choices.

For motivated investors there are always ways to enhance your 401k returns.

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