Definition of market timing

A short-term trading strategy in which an investor tries to benefit by predicting market movements and making trading decisions accordingly.

uch decisions are often based on economic conditions and data, technical analysis, or the prices of individual securities.

In the mutual fund world, market timing is a short-term strategy in which the trader attempts to benefit from inefficiencies or differences in the daily closing price of a fund. This practice is legal, but frowned upon and most funds place trading limits on the number of times an individual can enter and exit a fund within a given period. [1]

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