Behavioural Finance

Market Timing

Definition

What is Market Timing?

Attempting to move in and out of markets based on predicted short-term changes.

Example in practice

An investor sells all equities before an expected correction and risks missing a rebound.

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The tendency to feel losses more strongly than equivalent gains.

The tendency to overestimate one's knowledge, forecasting ability, or control.

The tendency to seek or interpret information that supports an existing belief.

Incorporating environmental, social, and governance factors into investment analysis or ownership.

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