Business and Personal Finance Dictionary

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• MARKET TIMING
  
  This trading strategy aims for quick profits by taking advantage of short-term changes in securities prices. Market timers, sometimes known as day traders, try to buy low and sell high by taking advantage of minute-to-minute changes in the financial marketplace, such as a forecast on interest rates or a sell-off in a particular market sector. Most experts agree that market timing is a risky approach because there is no way to predict changes accurately, and a small miscalculation can result in large losses. With the increasing popularity of online trading, the number of day traders has increased dramatically. So have concerns about the risks inexperienced investors take when trying to time the market. For one thing, there's no guarantee that an online transaction can be made quickly enough to lock in gains or prevent losses, especially in a volatile market.
  
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