Market timing is the strategy of making buying or selling decisions of financial assets (often stocks) by attempting to predict future market price movements. The prediction may be based on an outlook of market or economic conditions resulting from technical or fundamental analysis.
Keep in mind Market timing is the opposite of buy-and-hold, a passive strategy in which investors buy and hold for a long period, regardless of market volatility. While feasible for traders, portfolio managers, and other financial professionals, market timing can be difficult for the average individual investor.
Common wisdom today tells us that timing the market can be very challenging. As hard as investors may try, earning massive profits by timing buy and sell orders around future market price movements is an elusive concept. This year is a good example of unpredictable circumstances that can affect the market timing.