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Trying to predict when to buy and sell based on future market movements.
Why It Matters
Market timing sounds smart but almost always fails. Studies show that missing just the 10 best days in a decade cuts your returns in half. Those best days often come right after the worst days - when timers are sitting in cash. Even professional fund managers can't consistently time the market. Time IN the market beats timing the market.
Key Points
- Research shows 90%+ of market timers underperform buy-and-hold investors
- You have to be right twice: when to sell AND when to buy back in
- Dollar-cost averaging removes the timing decision entirely - just invest consistently
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Common Beginner Investing Mistakes
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Common Questions
Trying to predict when to buy and sell based on future market movements. Market timing sounds smart but almost always fails. Studies show that missing just the 10 best days in a decade cuts your returns in half.
Market timing sounds smart but almost always fails. Studies show that missing just the 10 best days in a decade cuts your returns in half. Those best days often come right after the worst days - when timers are sitting in cash. Even professional fund managers can't consistently time the market. Time IN the market beats timing the market.
Research shows 90%+ of market timers underperform buy-and-hold investors
You have to be right twice: when to sell AND when to buy back in
Dollar-cost averaging removes the timing decision entirely - just invest consistently