10: The Essential Rules for Beating the Market

Chapter 10. Make a Lot More Money by Timing the Market

"You have been told that you cannot time the market—you have been told wrong."

Equation 10.1. 

Okay, this is your final rule. This is the rule that ties everything together and moves you to being a master stock market investor. To become a master stock market investor, you must learn how to time the market. Very few stock market investors know how to achieve the goal of actually and consistently timing the market and timing it correctly. Follow the steps in this rule and you will know exactly how to time the market.

This rule will make timing the market a reality for you and, more importantly, show you how to make money when almost everyone else is losing money.

In this rule, you will learn how to master the art of knowing the best time to buy stocks, the best time to sell stocks and/or tighten your stop loss orders, and the best time to short stocks.

Hopefully, you have read and studied the previous nine rules and are ready to start building your world-class portfolio of stocks. But is right now the best time to be buying stocks?^[15] Maybe we are in a cyclical bear market; maybe we are topping out on a secular bull market; maybe we are facing a recession; maybe we are just coming out of a recession; maybe commodity stocks are soaring; maybe the dollar is plummeting; maybe a new war is about to break out; maybe interest rates are rising; ...