Avoid market timing from "summary" of The Bogleheads' Guide to Investing by Taylor Larimore,Mel Lindauer,Michael LeBoeuf
Trying to time the market is a fool’s errand. It’s incredibly difficult to predict when to buy or sell investments based on market movements. Even the most seasoned professionals struggle to consistently time the market correctly. Market timing requires you to be right twice - once when you sell and again when you buy back in. If you get either of these decisions wrong, it can have a significant negative impact on your portfolio. Instead of trying to time the market, it’s better to focus on a long-term investment strategy. By staying invested for the long haul, you can weather the short-term ups and downs of the market. Over time, the market has historically trended upward, so by staying invested, you stand a better chance of benefitting from this growth. Market timing can also lead to emotional decision-making. When the market is going down, it’s easy to panic and sell out of fear. Conversely, when the market is soaring, it’s tempting to chase returns and buy in at the peak. Both of these behaviors can be detrimental to your investment returns. It’s important to remember that investing is a long-term game. By staying the course and sticking to your investment plan, you can avoid the pitfalls of market timing and give your investments the best chance to grow over time.
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