Monday, January 3, 2011

Market Timing

Market timing refers to any number of strategies where an investor will actively buy and sell positions in order to try and generate excess returns. Such investors may attempt to use strategies like momentum trading, technical analysis, sector rotation, and others; they may also make use of derivatives and short-selling as part of their active strategy to try and beat the market. The opposite of market timing is generally understood to be the buy and hold strategy, whereby investors will less actively take a position and hold it for long term growth.

Synonyms: Active investing, Trading, Day trading, Investment timing

If you have any further questions or would like to add to this fund management term, then please submit your thoughts below.

No comments:

Post a Comment