Image
Image

Proof that Market Timing Doesn’t Work!



Indexopedia Research Team
By Indexopedia Research Team | August 13, 2025 | In

Trying to time the stock market is like trying to catch lightning in a bottle – tempting, but statistically doomed to fail. While the concept of “buy low, sell high” seems intuitive, the reality is that predicting market tops and bottoms with any consistency is virtually impossible, even for professionals. In this article, we’ll break down why market timing doesn’t work, using real-world examples, data from major recoveries, and insights from investor behavior research. The Illusion of Market Timing Market timing is the strategy of moving in and out of the market based on predictions about future price movements. It sounds simple: sell before a downturn and buy back in before the rebound. But here’s the catch – you have to be right twice. First, you must correctly call the top. Then, perhaps even harder, you must perfectly time your re-entry before the market surges again. Miss either side of that equation, and you risk doing far more harm than good to your long-term returns. The High Cost of Missing Just a Few Days Let’s get straight to the numbers. From January 2010 through June

[Protected for Premium, Premium Preview Indexopedia Members Only]

Already a Premium Member?
  Click here to log in