How to Time the Stock Market

Stock market analysts often predict "bear" markets and "bull" markets. Having this information is useful only if it is accurate. Historical highs, lows, and trends are also useful for estimating when to buy, hold or sell an investment. To time the stock market, start with your own review of the most recent and the most notable bull and bear markets. Patterns that emerge will help you make an informed decision about timing your stock purchases and sales.

Difficulty: Moderately Easy

Instructions

1. Learn basic stock investment concepts and vocabulary. Review stock market history in the "Stock-Traders-Almanac." Understand how traders and professional analysts classify stock market trends.

2. Visit the Wallstreetcourier website and download the free "Ebook of Technical Market Indicators." Discover the techniques used by many analysts that predict the stock market ups and downs, by industry and by stock. Get a snapshot of the many factors that can influence the market and the price of your stock purchase or sale.

3. Follow the daily Standard and Poor 500 index in the "Wall Street Journal." Review and note how many S and P index stocks reach new highs and lows. This stock price data will provide hints about excessive buying and selling activity. Use index fund reports and the NASDAQ Composite to time the market as well.

4. Explore some historical trends that many investors swear by. Bottomlinesecrets has tips to help readers learn to time the stock market. They have some tried and true long-term investment strategies on their website. Historical evidence here, not folklore, shows that overall stock performance has been worst from May through November since 1950.

5. Create your own trial stock portfolio. Consider all the factors that you need to take into account to predict when to buy low and to sell high.

6. Develop a long-term investment strategy, based on your research, tips and news updates.

Tips & Warnings

• Subscribe to free newsletters to get tips on timing the market by industry or by season.

Resources

• Buy new or used Stock Trader's Almanac at Amazon.
• Find market timing tips at bottomlinesecrets.
• Download an ebook of market indicators at wallstreetcourier.