Saturday, January 12, 2013

How To Time The Stock Market And Make 20%

You'll hear expert upon expert say you can't time the stock market. They'll tell you to put your money into the market and forget about it. That's the exact opposite of what you want to do. Why stay invested when the market is going down? That doesn't make sense.

What people don't realize is it is possible to time the stock market. You may not get in at the exact bottom or get out at the exact top -- you can get in and out near those two points. Doing that will give you somewhere around 20% yearly returns... all with only a few trades every year.

The market goes through cycles. Constantly going up and coming down, going up, coming down. All you should care about is getting invested when the market is swinging higher and getting out when it starts going down.

Sounds easy, doesn't it? It is! Trust me, it really is.

One Simple Chart
Here's the secret... there's one simple chart that tells you exactly when to buy and when to sell.
Pull up the $BPNYA on, add a 30 SMA to it and you're in business. Every time the it crosses up through the 30 SMA you buy and when it crosses below you sell.

I told you it was easy. In the chart above you'll see the $BPNYA for the last few years along with $SPX below it. You'll notice you're catching every major move shortly after it occurs and getting out very near the top. If this is all you follow you'll average 20% or more every year while avoiding the big down moves.

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