The Timing Factor in the Purchase and Sale of Common Stocks

Abstract

UCCESSFUL exploitation of the major cyclical swings in stock prices, as well as the preservation and moderate accumulation of capital over a period of years, demands a knowledge of the time factor in the purchase and sale of securities. Buying securities, as permanent investments, to put away and forget about, is not the part of wisdom under rapidly shifting world economic and political conditions. The problem of timing purchases and sales of securities is at least as important as, if not more important than, the problem of selecting stocks for investment and speculative purposes. A knowledge of the major cyclical swings in stock prices and business activity and the ability to time purchases and sales of securities to coincide moderately well with these cyclical movements are primary requisites for the investor and trader attempting to maintain and accumulate capital.