Thursday, January 18, 2007

Deciding on a good Stock Market Timing System

Here are some tips to pick the good market timing system:

There should be a rationale behind any system you use, and especially why it provides superior results.
Rules should be simple and not complex. Favor the systems that have simple rules.
It is preferable to use indicators or systems that are self-adaptive to any or at least most market conditions.
Remember to use several systems from different groups. Here are a few simple Market Timing Systems that can be easily implemented:
Monetary
Valuation
Technical Analysis
Calendar – Best six months, Presidential cycle or both combined.
Most important, remember to constantly be on the lookout how to improve your system.

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