How to Time the Market Like a Pro Using Moving Averages

Panic Drop Library

You’ve learned how to buy and hold. You know the drill. Invest consistently, ride through the bull markets and bear markets, and over time you’ll average about 10% per year.

But what if you could do better?

What if instead of sitting through every brutal bear market, watching your portfolio bleed for months, you could get out before the worst of it and get back in right when the new bull market begins?

That’s exactly what trend following does. And it’s simpler than you think.

In this blog, I’m going to show you how to use just two moving averages to identify when a bull market flips into a bear market and when that bear market reverses back into a bull. I’ll walk you through 20 years of real backtested data on the S&P 500 so you can see exactly how this plays out.

You’ll learn the two conditions that must be met before you buy or sell, and the critical exception where this method fails and what I do instead.