Asset Allocation & Risk
Does 'market timing' (buying low and selling high) work?
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Market timing is a strategy of deciding when to buy and sell by predicting the future direction of the market as a whole, but many point out that short-term stock market returns are almost impossible to predict.
Some analyses also suggest that 'return-chasing' behavior, buying funds with high past returns and selling those with low returns, can actually hurt performance. You should also consider that frequent trading increases costs.
This answer is general financial information as of 14-10-2026, not investment advice. Rules and tax rates change, so please also check the latest guidance from the source institution.