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Section 8
Trying to Time the Market
Virtually no one, except for people who call themselves “day
traders,” would admit to engaging in “market timing.” Trying to
time the market is a complete waste of time, counterproductive
to growing your wealth, and a recipe for a stressful life. In this
chapter, I’ve covered some of the most common mistakes that
investors make. The investor missteps discussed here have one
commoninality: trying to time the market. Let’s look at how
market timing leads to these common mistakes:
► Trying to do it yourself: In my experience, many people
who manage their own portfolios tend to move their
investments around more than they should, usually
trying to make more money or avoid losses. This is, in
essence, market timing.
► Failure to control emotions: The failure to control
emotions leads investors to swing back and forth
between trying to make a lot of money by investing in
hot ideas and attempting to avoid losses by getting out
of the market. This is market timing.
Chapter 4: The Most Common Investor Mistakes
