Market timing involves analyzing and predicting the movements of various financial markets so that profits can be made. It involves making trades in anticipation of market performance where the goal is to buy securities before they rise in value and to sell them before they decline. In essence, the investors attempts to buy low and sell high.

Market timing is an active category of investing and is based on analyzing and interpreting both fundamental and technical data. Fundamental analysis looks at factors such as a company's financial results, management, competitive position, and the economy, while technical analysis is based on an examination of stock prices, trading volume and other indicators in an effort to forecast price trends.

Market timing is considered by many to be a risky investment strategy as it requires precise timing and knowledge of market activity. It has become increasingly popular in recent years as investors seek higher returns than traditionally offered by traditional buy-and-hold strategies. It is also used by professional investors to hedge their portfolios.

For individuals, having a good understanding of market timing requires a significant amount of research and study. This involves monitoring news and economic events, analyzing financial disclosures, and most critically, recognizing and acting upon signals that the market is moving in one direction or the other. Although this can be achieved by the person with the right skills, training and knowledge, the average investor is likely to invest without market timing.

When it comes to market timing, it is important to keep in mind that past performance is no guarantee of future returns. While certain strategies may have worked in the past, they may not produce the same results in the future and timing the market can be difficult. As such, investors should take into consideration their own unique financial circumstances before investing.