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Hi all
I know that attempting to time the market is foolsplay. Like many here I diligently contribute every month to my retirement accounts in the hopes of getting FIRE'd ASAP (sigh 20 years to go). I normally do my contribution around the middle of the month, but do not have any rhyme or reason as to the timing. I also do not have it automatically set up as it's not possible with how my account is setup.
Anyways, my portfolio is strongly correlated with how the Toronto Stock Exchange works as it's mainly EFT's and dividend funds. There are about 20 trading days each month and over the long term we would expect that 11 of those would be up days and 9 would be down days (or something close to that). My plan is to only invest whenever there is a blip in the market. For instance in the last 2 weeks, I think there were 3 days out of the 10 that had the TSX drop. More specifcally I would want to invest in the current month between the 5th and 20th day of each month. Whenever the market has a down day, I would invest in the following day - no exceptions. If the market had only up days, then I would go ahead and contribute as usual on the 20th of the month to ensure I made my contribution for that month.
Any thoughts on this? For example, the last 10 days on the TSX had 7 up days and 3 down. The down days were in the .3-.5% range. If you could get even a .2% "discount" every month it would be significant over the years I would think.
Is this a ridiculous idea?
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