Know The 5 Reasons Why Market Trend Timing System Is Useful To Enhance Your Retirement

Do you find that you are worrying more and more about having enough money to retire

? The after effects of the Great Recession have led many Americans to worry about this. There is massive news coverage of the decline in the value of houses, but other investments have also taken hits. You may need to put more effort into squeezing the most out of what you have left. Have you thought about using a market trend timing system? Following are 5 reasons why you should consider adopting one of these investment management strategies.

Like many people, you may have been following a buy and hold strategy for your investments. This is certainly a low maintenance, low cost approach, and in many cases it is very successful. However, analysis of market prices in modern times shows that there is a significant risk that an asset held for many years may have a lower value at the end than what was paid for it. Thus buy and hold is actually a fairly risky approach, and some trading may be safer than no trading.

Are you looking forward to receiving a sizable pension on retirement? A few years ago, many employees would have answered yes to this question. However, pensions in the United States have fallen on hard times. You may not be eligible for one at all, or if you do have one, it might not be as large as it might have been for someone in your position 20 years ago. Active trading in your other retirement assets may help you compensate for this loss. Market trend timing can be a very productive approach to trading.

You are probably eligible for Social Security, or one of the equivalent government retirement plans. Politically, it would be almost impossible for the government to eliminate this, but it does seem likely that the benefits will change, and not in the upward direction. You can't really do anything about this, but you can compensate by trading your other retirement assets more actively.

Do you have any money in a mutual fund? This is one of those great ideas that didn't actually work out that entire well. Aside from a few stars, most funds are competitive with investment by tossing a coin. It's too bad, because they are convenient and do provide good diversity in most cases. You might well be better off to forgo their fees of the funds and roll your own trading plan.

You may have heard that it is impossible to beat the market. This claim comes from the efficient market hypothesis, which, among other things, says that investors always make rational decisions. It is becoming more and clearer that this if often not the case. If some investors are making irrational decisions, then other investors have the opportunity to exploit the resulting inefficient market.

Have you ever managed an investment? The rules are simple: buy low and sell high. The problem of course knows when prices are low and when they are high. You don't need to know the absolute high and low points, just enough about trends to make a profit on most of your transactions. The goal of market trend timing system is to give you enough information to guide you to successful trading.

Whatever investment approach you choose should be fitted to your own specific situation. Active investing may not be the way to go for you. However if it is, then market trend timing systems may be worth a look. They may help you get where you want to with your retirement.

by: Jeff Yuan

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