Savings and Investments

Market Timing, Technical Analysis, and Fundamental Analysis

Why is timing the market controversial?

Some believe that the markets are random and yet efficient, so that there are exactly the right number of buyers and sellers at any given point during the day and the most efficient price is realized. Because of the randomness of market movements, it cannot be accurately timed. Others 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 the investor to make profit because of it.


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