As a market timer, the one thing we must always remember is that the markets can, and most definitely will, throw every possible hardball, curve ball, fast ball, knuckle ball, etc. at us.
The reason we invest in the stock market is because we recognize the huge potential for profits. But we are not in safe money market funds. We are timing in a freely traded market that is subject to the emotional whims of traders. And when money is involved, those emotions can, at times, be extreme.
We became market timers because we have realized that not only is there “no easy money” but also that the stock market will do all it can to “relieve us” of our money.
We are more than uncomfortable with the buy-and-hold approach to investing, and realize that although buy-and-hold may be fine if you are willing to wait 20-30 years, it can lead to huge losses over shorter time frames. The most current example being 2000-2002 when the S