Market Timing gets a bad rap among the buy and hold community. They say it can’t be done. They say anyone who tries it is a fool. Truth is the majority of market timers are just acting on a whim, with no logic or time tested analysis.
I was skimming around the internet and found this article below. Not only does the author say “buy and hold doesn’t work”, but he also has a mindless illogical formula for market timing (or at least when to sell). According to his article, a sign to sell is when you would no longer buy more shares. Yes thats it. Pure intuition. No evidence. No technical analysis. No wonder market timing gets such a bad rap.
If I implemented that strategy I would never own everything longer then a day.
Its important to remember that any active trading should be based on evidence based strategies. Strategies that can be backtested and have a probability of continuing in the future. Not sure how you would backtest your urge to sell 😉
http://www.forbes.com/sites/robertlaura/2012/05/31/wake-up-buy-and-hold-doesnt-work/2/#20080aaa15ad