Market Timing

Definition ∞ Market timing is a trading strategy that attempts to predict future price movements to buy or sell assets at opportune moments. The objective is to capitalize on anticipated short-term price fluctuations rather than holding assets for extended periods. Successful market timing requires accurate forecasting of market tops and bottoms.
Context ∞ The efficacy of market timing in volatile cryptocurrency markets is a subject of ongoing debate and analysis. News reports may discuss instances where traders have successfully entered or exited positions based on perceived market timing opportunities, or analyze the challenges associated with consistently predicting price swings. This concept is central to discussions about active trading versus long-term investment strategies.