What is the most important aspect when investing?
i) Market Timing
ii) Security Selection
iii) Asset Allocation

Market timing is the attempt to predict the future by buying or selling investments in an effort to maximize profits. Many feel that this is the most important; hence, they regret not entering the market when it bottoms and exiting when it peaks.

As we all know, it is impossible to predict the future (Unless through an unfair advantage like insider information or market manipulation or just simply plain luck). These attempts will cause frustration and incur hefty transactional costs, with little profitable results over the long run.

A simple strategy would be to practice dollar cost averaging. Over the long term, the average purchased price will be lower than the average price. This is due to purchasing of more units when prices are low and less units when prices are high.

Security ......