We are in the last day of April and now the regular May cliché “Sell in May and go away” will resurface in the media.

It is better to remember there is no way we can time our entry or exit in stock market. Market timing is the most difficult aspect in the trading mechanism. Investors will find it too difficult to follow the market timing concept.  In general investors do the following mistakes:

1. While timing the market they sell off their holdings at a wrong time
2. Historically a sharp fall is followed up by another short up move!
3. In the process of timing the market they do too many trades and lose the long term tax benefit
4. They also add too many trades which increases processing cost and thereby they lose more money
5. They fix their aim on short term goals and never make a killing money in the market in the long term

Unless we find something wrong with a stock it is not advisable to time the market as it always produces opposite results. Such kind of cliché will be useful for the media to fill the time but it could empty your wallet.