Money Illusions: 9 Common Beliefs That Keep Smart Investors Stuck

2. The Myth of Market Timing

The allure of market timing—the belief that one can predict market movements to buy low and sell high—has trapped countless investors in a cycle of poor decisions and missed opportunities. This illusion persists despite overwhelming evidence that consistently timing the market is nearly impossible. Emotional biases and cognitive errors often lead investors astray, resulting in buying during market highs driven by greed and selling during lows out of fear. Instead of relying on market timing, a disciplined approach focusing on long-term investment strategies and diversification can help investors sidestep this illusion and achieve sustainable growth.