Market, Money, Man, Machine

” MARKET TIMING – THE MANTRA OF A SUCCESSFULL INVESTOR ”

Investing successfully in equity market demands a great deal of knowledge about the
marketapart from large sum of money. The market is driven by a number of forces and the
mechanics of the same is quite difficult to understand.

The most successful mantra for successful investor is of “getting in” and
“moving out” at the right time. A successful (smart) investor is one who enters the market
at its bottom or at average levels and leaves the market when it gives the first sign of
sinking.

Since , it is not possible for a common investor to correctly time the market,
it is advisable to invest regularly in small amounts when the market appears to be low
& withdraw regularly in small amounts when market appears to be high. In any case, he
(investor) should at least avoid entering at the market peaks & exiting at the bottoms.

The effort of “moving in” at a wrong time i.e. at market peak can, be neglected to
some extent if one can stay put for a long period. The effect of “moving out” at wrong time
i.e. bottom. However, will continue to haunt the investors should they fall victim to greed.

“Even a bumper crop may not help former have high yield, if there is delay in harvesting.”

Market mechanism also involves market correction in the overheated market. The mantra
for the investor is to sustain the pressure $ understand the concept of market correction,
stayed invested for a long period & reduces the loss after the market bounced back.

SHIV KUMAR GUPTA
M.B.A 2nd Year