I Can't Stand It Any Longer

A tried and true market timing strategy followed by many with measurable results

Market timing (getting in at market lows and out at the highs) has long been debated as an investment strategy.  There are many people who swear by it – many who say they have gotten very rich by timing the market.  There are many more who say it is a fool’s journey, the act of the uninformed, and a dangerous road to follow.  I agree with those who reject traditional market timing strategies, but I have my own version of it that I have used time and time again with very clear results – and many friends tell me they follow it religiously too. It is absolutely guaranteed to loose money.  It is called “I can’t stand it any longer.”

It works particularly well when you have only a little money to invest (like me), can’t afford to loose it, and have decided that safe bonds are just too conservative.  It also is addictive. 

Here’s how it works for me.  The market goes up and up and I stand by with cash waiting for the right signals.  It finally goes up so strongly and consistently, day after day, that I decide I’ve got to get in (I CAN’T STAND IT ANY LONGER) and I take – for me – a big position.   Of course the market turns down almost immediately.

And here’s where it works even better.  I don’t sell right away at the down turn and take my losses.  I stay in waiting for the market to turn around.  And, I stay in and in ….  Finally, when I can’t sleep any longer and when I have lost a great deal of money (I CAN’T STAND IT ANY LONGER)            , I cash out.

I have done this more times than I wish to say.  I know there are many out there who swear by this strategy as well.  If you invest, you need the stomach for it.

Daniel Socolow
Daniel Socolow: President, Socolow Group. Former Director of the MacArthur Fellows Program, President of the American University of Paris, Vice President of Spelman College. BA, MA, Ph.D.

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  • Anonymous

    June 27, 2007

    This is great! I do it too. Thanks for the article.

  • Anonymous

    June 27, 2007

    Market psychology is an an extraordinary study. I can make lots of money by patiently waiting for crowds of folks following this same mentality to hit crescendo buying and crescendo selling - and going in the opposite direction. We saw crescendo selling in July of 06, and I believe that we may have seen crescendo buying a couple of weeks ago.

  • Anonymous

    June 28, 2007

    This sounds like a losing strategy. I hope you still have your little pot of money.

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