Trading And Market Timing  

When it comes to trading, market timing is critical. There are several different reasons why anybody who is interested in trading futures, ETF's, Forex, commodities or stocks should learn and perfect their market timing knowledge and skills. 

When it comes to trading, market timing is critical, and the most important reason of all is to minimize your risk exposure, whenever there is a significant amount of money at risk

The most important reason of all is to minimize your risk exposure. Whenever there is a significant amount of money at risk, you tend to start having doubts about your original reasons for the trade in the first place when the market starts to move against the position you have taken. If you've been trading for a while, most likely you have experienced these emotions.

Once you placed your trade, it may look like profits were a sure thing, but now it is starting to seem like a very foolish move. The reason you are feeling that way is that you don't feel confident about the market timing analysis method that you used. What makes it so hard is you are risking more on the trade than you actually are comfortable with. So why did you risk that much then? In a trading world, no one knows when the market is going to reach the bottom or top or how and therefore when one tries to time the trade as near to the top or bottom to minimize your risk exposure is foolish. 

Think about it for a minute. If you had a copy of tomorrow's newspaper right now for the S&P 500 futures or Euro Dollar prices, where would you be entering the market? Naturally, if the S&P500 futures were at a bottom, then you would go long off of that lowest price. And you would place your stop-loss right under the lowest low. You wouldn't be risking much (actually you wouldn't be risking anything since you would know the future), and you would be very confident knowing that the low was going to hold. 

Developing an effective market timing method involves forecasting both the long-term and short-term trends where you can be assured that the odds of the top high or bottom low that is currently in place will likely hold to enable you to put your stop right beyond it. Although you won't be correct every time, having an effective market timing method just means you will be choosing good trade often enough so that your larger wins will more than offset smaller losses. 

Trading Intelligently

Trading picture: how you would feel getting into a trade with a stop-loss which you believed if it reached you wouldn't be melting away much of your money. And further imagine that you aren't randomly placing your stop-loss anywhere, but placing in an intelligently spotted price place because your timing method has shown to be superb in identifying locations of support as well as resistance. Or additionally effective in the identification of the day as well as week bottoms or tops in the highest probability when and where will likely to develop.

WD Gann was considered to be a master at timing and price analyst. Several accounts show that the market timing methods that he developed enabled him to be able to pinpoint price levels that were the most likely to hold against a market push, and I know it is true based on what I've seen with my Trade Selector Signal system as well. Investing a small amount of capital and devote the time to learning and perfecting marketing timing methods and trend forecasting can reap massive rewards for one's efforts.   

Over the past couple of years, I have posted a numerous of different live trades on my website that show forecasting trends of various time frames utilizing market timing methods such as the Trade Selector Signal system. As opposed to the Gann Wheel timing and price analysis, the Trade Selector Signal system is based on price-action-time-visibility which displays the symbols based on a mathematical calculation on precise entry and exit prices created by the market price action.  

Those Live Signals demonstrate and have proven numerous times that they are effective for trend forecasting and trading. When these market timing methods are used, it has made it possible to place trades with very low-risk exposure, and therefore, allows for a trading experience that is much calmer and easier to fight against one's doubts.   

In Summary 

It is widely known that the worst emotions that a trader can have are greed and fear. Although improved market timing doesn't necessarily help with greed, fear can be significantly reduced through improving one's market timing techniques.



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