Market timing, market corrections & financial behaviour
Discover more about the financial terms, so you can take smarter decisions for your investments.
What is market timing?
Most investors think it is convenient to get in and out of the market at the right time by trying to do market timing, that is to buy stocks before a rise and sell them before a downturn.
Taking advantage of the downturn in markets can be a good strategy but choosing autonomously the best time to invest or divest is very difficult as, if driven by emotion, the investor tends to buy at market highs and sell at lows.
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How does the market behave?
Financial markets are prone to react with strong fluctuations to economic, political and corporate events, thereby jailing investors' short-term outcomes.
Historically, it has happened that in times of maximum pessimism the market has offered important opportunities for investors, while in moments of maximum optimism risks have manifested themselves that are not easily predictable.
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What is behavioral finance?
Investment decisions are influenced by the personal sphere. For this reason, choices can be influenced by behavioral, emotional and/or cognitive variables.
Investing with a strategy based on actual goals and careful monitoring of the investment helps to define a disciplined investment plan that can mitigate the impact of emotional or irrational choices
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Content of this video is published for information and education purposes only on the products and services offered by Intesa Sanpaolo Bank Albania Sh.a. Any information provided in this document does not constitute investment advice or investment recommendation nor does it constitute an offer to buy or sell or a solicitation of an offer to buy or sell shares or units in investment funds or other financial instruments, nor should it be deemed to be an offer, or a solicitation of an offer, to purchase or sell any investment product or service.