Attempting to Sell Securities at Their High and Buying Them at their Low

Selling securities at their high and buying at their low are everyone’s objectives. Of the over 1500 strategies I evaluated along with their pros and cons, this strategy could be number one.

The problem: The strategy does not work in practice. Blame it on human psychology. Or the blur of constant financial news with new buying and selling suggestions. Or your need for occasional cash for urgent needs, and so on.

Research shows that very few professionals can time the market, except by accident.

Be especially careful with bonds because you are bound to get wrong information from “experts” about the risk of holding them during inflationary times. Investors generally get poor advice about the practical usage of duration principles, as a tool for bond profits. I often write about this.

So forget about your ability to time the markets.