Why even perfect market timing doesn’t produce the best returns

 

Why even perfect market timing doesn’t produce the best returns



You’ve probably heard the expression, ‘it’s about time in the markets, not timing in the markets’. Investment markets go through periods of highs and lows and common logic would have you think that a strategy that looked to buy only in the lows and avoided putting money in when markets were high would see you profit more in the long run. But today I am going to put forward some data that shows even if you could time the market perfectly and only buy at the bottom of the lowest lows. That would still be a terrible idea. This is an important lesson for any beginner because after all, investing isn't about the ups and downs you experience but how you deal with them. Visit us at https://trading212.com Download the free native mobile apps now:
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