Introduction to Personal Investing

The Basics

Why is timing the market controversial?

Timing the market is controversial because some experts believe the markets are random yet efficient; there are exactly the right number of buyers and sellers at any given point during the day, so the most efficient price is always realized. Because of the randomness of market movements, it cannot be accurately timed. Other experts who trade every day rely on technical and fundamental analysis to determine their trading positions, and believe that—given certain clues—the markets can be timed, allowing an investor to make profit as a result.


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