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Why even perfect market timing doesn’t produce the best returns

You’ve probably heard the expression, ‘it’s about time in the markets, not timing in the markets’.

Investment markets go through periods of highs and lows and common logic would have you think that a strategy that looked to buy only in the lows and avoided putting money in when markets were high would see you profit more in the long run.

But today, I am going to put forward some data that shows even if you could time the market perfectly and only buy at the bottom of the lowest lows. That would still be a terrible idea.

This is an important lesson for any beginner because, after all, investing isn’t about the ups and downs you experience but how you deal with them.

0:00 – Intro
1:16 – 3 different timings
3:33 – Worst timing
4:16 – Best timing
4:42 – Investing consistently
5:16 – Having your money work for you
6:59 – Buy low, sell high

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Tom’s personal YouTube channel: https://www.youtube.com/c/ThatFinanceShow

#Stocks #Investing #Investing101 #Trading212 #Trading #equities

As with all investments, your capital is at risk. Investments can rise and fall and you may get back less than you invested.

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