Estimated Duration: 0.5 Day

Notes: You should grasp the importance of Market Timing after reading this lesson.

Understanding Market Timing

Proper Market Timing separates successful traders from all others.

The cliché 'Timing is everything' is very true when the topic is trading the stock market. The reason why is simple: If we make a trade at the wrong time the stock we are trading could easily move against us and we could easily lose money.

Therefore, quite intensely, Stock Traders Daily studies the Markets in order to identify Proper Market Timing for you. You will not need to evaluate the markets yourself to determine proper Market Timing, again, we do that for you. In fact, this is the key ingredient to our service that should make it stand out from any competitor that you may be considering.

Not only does Stock Traders Daily evaluate Proper Market Timing for you, but we have been very accurate at pinpointing Proper Market Timing in the past. This has provided our clients with the tools that they need to make successful trades. They are trading, in essence, at the right times.

In addition though, and sometimes more importantly, this has also kept our clients from making trades at the wrong times.

Making Trades at the wrong times will usually cost you money.

Let's take a closer look at these tools:

We evaluate the Markets every day using a 3-Tier Technical Analysis of the Market. From these Analysis, which you should understand from the last lesson, we derive data points which we call Trading Parameters. These Trading Parameters are the essential trigger points which alert us that a trade should be made. These Parameters are what tell us when to buy and sell.

The Trading Parameters tell us how to time the Market

The goal of Proper Market Timing is clearly to help you achieve successful trades. However, a secondary goal is to help you take the guesswork out of your trading life. For example, if you know when you should be trading (and when you shouldn't) then you won't second guess your actions. Your trading discipline will be clear. And your trading strategies can be implemented.

Proper Market Timing allows you to maintain discipline and focus.

One of the toughest things to do as a trader is to maintain your discipline. However, when you know in advance when to trade your potential to stray from your discipline is reduced significantly. This is a key element in achieving success as a trader and it is a byproduct of Proper Market Timing.

Let's review a few key points:

Proper Market Timing is a direct result of accurate technical analysis.

We always trade when a Parameters is tested.

We never Trade unless a Parameter is tested.

Proper Market Timing limits the number of trades that may be made (reduces commission costs).

Proper Market Timing keeps you in tune with the Market.

Proper Market Timing helps you maximize your returns.

Proper Market Timing keeps trading simple and understandable.

Proper Market timing influences you to remain disciplined.

Let's look ahead a little bit:

Finding the proper times to enter and exit the market is fine. However, the next obvious question is: what stocks should be traded when the Market is telling us to trade (based on the parameters)? The answer is that we need to find the proper timing in the stocks that we follow too. We need to find stocks which are telling us, based on their respective 3-Tier analysis, that they should be traded as well.

This analysis is different for Day Trades, Swing Trades, and Longer Term Trades.

Finding Trading Ideas using each of these Trading Styles will be discussed in detail in the lessons that follow. As you continue your tutorial, you will learn how to use Proper Market Timing to find appropriate stocks to trade when the Market is offering trading signals.

Please take a moment to review this lesson because the forthcoming lessons require you to have an understanding of all lessons to date, and this one tells you why the disciplines discussed in the lessons that follow are important.