The market is the catchall basin for any global activity driven by desires, emotions, and pure speculation. Some may think that the market is purely online, while others believe that the physical market still dominates the world. Both beliefs are correct, but you shouldn’t focus on them. Instead, you should focus on market timing. By understanding and utilizing market timing, you will gain an upper hand over your financial journey.
Do you want to know how to benefit from market timing? Here are some interesting points:
#1. Preparing for Retirement
Retirement is the golden journey that many people are preparing for. This is a time where you relax and enjoy the fruits of your labor over the years. While it’s nice to envision a peaceful retirement, you should go down into the details and start planning as soon as possible.
Nowadays, there are many options to fund your retirement. Companies have 401k plans (with variations) for all employees and members. Do not work for a company that doesn’t let you save for a retirement fund. On a personal note, you can take a time deposit option and let it work for you throughout the years. A retirement expert can help you set your plans into motion, and he or she will even tell you some investment options to avoid.
#2. Choosing Family Over Career (Vice Versa)
Would you believe that starting a family or choosing a career depends on market forces? That is a reality! If you want to start a family, you need a sizable contingency fund that keeps on growing over the years.
It’s not always butterflies and kisses when it comes to family. You need hard facts, excellent financial habits, and remarkable foresight that will help you see financial challenges ahead of time.
Career-building also requires a decent financial nest egg. Market timing is important to your career in a different way. Your advancement depends on the platform that you’ve chosen. Financial factors are limited to how much you want to shell out for courses and additional activities.
#3. Entering Real Estate (And Getting Out)
Real estate will continue to boom, especially now that many people wanted to live on their own. Millennials are the real estate movers and shakers of the future, and their desire to purchase properties won’t fade anytime soon. However, there’s one problem – land is almost running out.
If you want to enter the real estate market, you should start small. Buy an undeveloped piece of land, work on it, and live on simple means. Once the property is ready, you can find renters.
Another viable strategy is to purchase condos, townhouses, apartments and prepare them for renters. Once you’ve prospered in real estate, you must think about an exit strategy. Market timing is important in entering and exiting real estate. If you do it properly, you will retire on a big heap of money.
#4. Starting a Company
You’re probably aware that starting a company is not an easy ordeal. There are many hurdles to face, especially during the first five years. Starting a company with little research is a quick way to set it to fail. Aside from analyzing your target market, you need to be aware of the market’s current state.
If you plan to enter heavy trading, then you should follow business discussion communities, forums, and other sources of information. Newspapers are essential because they relay current events that can be used for analysis.
If your timing for the company is excellent, then you’ve bested one of the early challenges. Do not stop researching to ensure that your company is on the right track.
#5. Making a Large Investment
At a point in your life, you will probably make a large investment. Some of the large investments that you have to think about would be home acquisition, stocks & bonds, cryptocurrencies, high-scale collectibles, gold bullion, antiques, and different assets. A simple research paper is not enough to help you determine the volatility and profitability of any investment. You have to assess every bit of data and find the right market timing.
An example: you shouldn’t invest in a stock option if the cycle is trending up. It’s very likely that the peak will fall down for a long time. Rather, pick an option that’s still on a low curve. Afterwards, you can now make the necessary adjustments. You may need the expertise of a financial expert before making any potential decision.
If you know how to tap on the mentioned five market timing examples, you will have a great shot at a better financial future. Just remember that market timing cannot be predicted with 100% accuracy – everything is based on research and experimentation. So, take your time, make your plan based on market timing, and wait for results!