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This chapter is from the book

Increasing Returns from the Stock Market while Reducing Risk

The strategies discussed so far relate only to the structuring of more efficient investment portfolios (and particularly to the benefits of various forms of diversification). We have not, as yet, even considered strategies associated with stock market timing, the attempt at least to make investments at the most appropriate periods in the investment cycle: to buy near market lows or at least relatively early in price up-trends and to sell near market highs or at least relatively early in price downtrends.

Successful market timing, like well-considered diversification, can help you to both increase returns from your investments and to reduce risks associated with buy and hold investments. If you are a typical investor, you are probably better off avoiding short-term trading, which places heavy demands on time, increases investment expenses, and which has become generally more difficult in recent years.

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