[USER]

I want to capitalize on the ride up but unsure what the signals are of a downturn because there is so much variability day-to-day. Thoughts?

[Allen]

*Checks investment policy statement*
Just following the plan. My strategy doesn’t require trying to time or outguess the market.

[John]

What investments you have also matters? Plus, if it’s a taxable account or not. Every down market still has winners and every up market has losers. Selling winners in a taxable account will force taxes, who’s is only good if you guess correctly and it becomes a loser.

[Tom]

What you’re attempting to do is called timing the market…one of the proven ways to lose out.

[Adam]

Buy and hold and ignore it.

[Dalton]

In 10 years, it won’t matter what the highs were this year.

[Angelo]

You can’t know the future. Don’t try to predict what the market will do next. Buy broad market index funds and hold steady for the long term.

[Chris]

I’m wondering if this is a troll post…

If you are actually curious, there’s a simple answer.

DCA, DCA, DCA. Buy index funds when the stock market is at ATL, buy index funds when the stock market is at an ATH, buy index funds when it’s up and down each week, buy index funds when there’s a zombie apocalypse…

Do not time the market…

Explore these too: I have about 333k to put in the total stock market

[Mark]

Always be buying. Stop paying attention to day to day fluctuations.

[Drew]

When I first saw this post, I was a little worried I’d see a few hare-brained ideas about strategies to time the market. I should’ve had more faith in this group! The consensus is ignore the fluctuations and just keep to your strategy.

[Branden]

Always be buying. Low expense, broadly diversified index funds. If you have high interest, non-mortgage) debt, you may consider prioritizing paying that off as well.

[David]

What lots of others are saying is right. Buy the market. Diversify. Hold for a long time. Timing the market is a game that will burn you eventually. Always buying steadily and never panic selling has always worked out as long as you’re diversified. Index funds are your friend.

The simple and easy approach is also the smart approach.

[Joanna]

There are a lot of different factors. It’s you’re referring to technical downturns , those can be found by studying charts and looking for patterns (support and resistance levels).

If you’re asking about economic signals, that’s typically a slowing economy, slowing JOBS, high inflation, and an inverted yield curve – i.e some of the things we saw last year. There were flashing red signs signaling a deeper correction in 2023 and the market had a stellar year. It’s important to understand economics to guide your investment decisions but you can’t time the markets. It’s time IN the market, not timing the market that will make you successful long term.

What‘s your goal? Are you looking to day trade and take profits on market swings? Or are you a long term investor looking to grow your wealth? If it’s the latter, day trading isn’t the best strategy unless you’re highly skilled and watching the markets 24/7. And even those guys rarely outperform the s&p over the long term. Personally, I believe in creating a well diversified portfolio and dollar cost averaging rather than trying to time my entry.

Hope this helps! Wish you success.

Have you seen: Where to invest though? I tried the stock market and lost money

[Ed-Alcantara]

Watch the S&P 500. A market downturn is a period of time when it declines 20% from its 52 week high. Volatility is different. Do not confuse the two. We officially entered a bull market. We are in the early stages. This being an election year expect more volatility but the trend is upward. Charts don’t lie. For day and swing traders volatility is how they make money.

There are systemic risks due to inflation, rising debt, commercial property bankruptcy and geopolitical risks. This is a picker’s market.

Passive investors will get mauled if the bottom falls out. Cautiously optimistic is my mood

[Luciano]

You invest in good companies, good Etf’s, and good mutual funds.. rebalance and stay invested no matter what the market does. Don’t worry about the swings.

[Author]

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