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stock market


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There are MANY misperceptions about what is risky and what is a sure-fire winning strategy.


For example ...


"Timing the market is a dumb idea" vs. "Dollar cost averaging is a good idea"


Reality: Dollar cost averaging is nothing more than a systematic approach to timing the market. Meaning, you can have several different systematic approaches to investing (i.e., sell it when it goes up 15% and buy it back when it drops 5% ... or ... buy $1,000 on the first of each month regardless of what is going on) ... and all systematic approaches, by definition, are "timing the market".



i think i see what you're trying to say but the accepted definition of 'market timing' is moving market into and out of the market based on what you think the market will do in the short term. for example, dollar cost averaging for all intents and purposes is the opposite of this definition. investing systematically a certain amount a month is not market timing. now, your first example, based on moving money based on performance, that could be considered market timing. but i think that most people refer to the first method when talking about systematic investing.

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