Market timing plays a big role in the stock market, but most people ignore it completely. Most people dont realize that in order to be successful when trading or investing in the stock market, one has to have both factors aligned: be right at their analysis and at the RIGHT TIME. If either one of these two factor are not correct, you will probably end up losing money.

To better explain the importance of market timing, I want to show you an example that has recently happened with the world crisis of 2008 when the Lehmans Brothers went bust. Do you think that everyone all around the globe lost money on that? No dear friend, make no mistake, there were people that actually MADE MONEY during the crisis; way more money that you and I could ever dream or imagine.

I was reading Gregory Zuckermans The Greatest Trade Ever, a book that tells about the up and downs that has happened during the world crisis, specially in the financial markets, with focus on John Paulson. John Paulson defied Wall Street and by being right and being right at the right time, he was able to perform one of the, if not the, biggest trade ever. This trade not only was big, it was also pure genius with a slight scent of simplicity.

I would recommend you reading this book if you are at all interested in this trade and the stock market as whole. It shows many stories and facts that have happened behind the curtains without anyone knowing about it. This book is great because it points out exactly how many others were just about right as Paulson was, but they were right at the wrong time and that made a huge difference in the end result.