Why Timing the Market Is Nearly Impossible, and Time in the Market Is What Matters

Trying, to, time, the, market, means, predicting, short-term, price, direction., You, need, to, sell, just, before, a, drop, and, buy, back, in, before, the, next, rise., It, sounds, appealing,, but, it’s, tough, to, do, consistently., Even, professional, investors,, with, more, data, and, resources,, struggle, with, this., The, main, issue, is, simple:, you, have, to, be, right, twice., First,, you, need, to, pick, the, exit., Then,, you, have, to, choose, the, re-entry., Just, one, costly, mistake, can, wipe, out, the, gains, from, many, good, calls.

Historical, data, shows, why, missing, even, a, few, of, the, market's, best, trading, days, can, hurt, long-term, returns., A, small, number, of, exceptional, days, often, make, up, a, large, portion, of, the, market’s, total, long-run, gain., These, best, days, don’t, come, during, calm, periods., In, fact,, many, of, the, biggest, rebounds, have, happened, just, after, the, market’s, worst, drops., This, is, when, many, investors, feel, tempted, to, sell.