Originally Posted by
flalaw97
So, I am thinking that as TSP particpants we have three things that make us significantly different than others who engage in market timing. I am trying to evaluate strategies in those parameters. 1. Only two IFTs per month (after that only moves to G) 2. IFT must be submitted before noon and 3. IFTs are free.
With respect to number 2. I see most people wait until around 1130 or so to initiate their IFT. I assume that is to wait until the last minute to see where the market is headed. So I am trying to figure out if there are principals that will help indicate where the market will close based on what it did before 1130.
With respect to number 3. There is no cost reason not to use all of your allotted IFTs, the drawback is once you have used your 2 IFTs, you can no longer increase your position in the market, only back out. But since it resets each month, is it best to develop a strategy to maximize returns/minimize risk on a monthly basis (rather than holding a position over a month). In theory, if you haven't used your second IFT in a given month and you think the market will drop on the last day of the month, you could sell all and buy your same position back in on the first day at the lower price right?
Just things that are going through my head right now.
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