
Ten Ways to Improve Your Market Timing

By Alan Farley
About this article:
It's December and getting close to the time when traders need to wrap things up and evaluate their profit-and-loss performance for the year. Unfortunately, most folks speculating on the financial markets in 2007 face major disappointment when they look at their results and realize how tough it's been to make money.
Sadly, most traders follow the same worn-out strategy over and over again, regardless of market conditions. They just buy upside momentum and hang on, hoping the bottom doesn't drop out of their positions. But as we know in this volatile trading year, almost every sharp move higher or lower has been followed by a vicious counterswing.
It's easy to dismiss this ragged price action, believing it's just an aberration in an otherwise perfect bull market, but nothing could be further from the truth. In reality, a choppy and dangerous tape is the most common environment in...

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