Buy and Hold vs Timing the Market

Should we buy and hold our shares or time our buying and selling of our shares?

Watch this video of Prof. Kenneth French of Dartmouth on Investing Strategies:

Buy and Hold vs. Timing the Market @ Yahoo! Video

Some important points to take note:

• No one can ever be consistently right in forecasting or timing the market. One who trys to time the market are likely to miss a good year and avoid a bad year.
  
• If you are to follow someone's advice who is timing the market, and that person turns out to be right, you can't really tell if it's because of that person's skill or pure luck.
  

The key to be a successful investor using the buy-and-hold approach is to diversify your investment into several good companies which continue to produce profits, or even increase their annual profits, despite the global economy slowdown, and only buy them below the Intrinsic Value. Among the hundreds of companies listed in Bursa Malaysia, only a selected few are winners. If you want to learn how to select "winning stocks" on your own, I recommend that you get a copy of the Bursa Winners e-book here.