# Market Timing

*Saving & Investing — Finicade finance glossary*

Market timing is moving in and out of markets to capture rises and dodge falls. It requires two correct decisions — when to leave and when to return — and the second is what usually fails, because re-entry feels most dangerous exactly when it matters most. Studies of investor returns consistently show a gap of one to two percentage points a year versus the funds those investors held, and most of that gap is timing.

**Also known as:** timing the market, tactical allocation

**Related terms:** [Buy and Hold](https://finicade.com/glossary/buy-and-hold), [Dollar-Cost Averaging](https://finicade.com/glossary/dollar-cost-averaging), [Market Efficiency](https://finicade.com/glossary/market-efficiency), [Behavioral Biases](https://finicade.com/glossary/behavioral-biases), [Lump-Sum Investing](https://finicade.com/glossary/lump-sum-investing)

Source: https://finicade.com/glossary/market-timing