Timing risk

Timing risk is the uncertainty associated with buying or selling a security in order to take advantage of high or low points in the market price. The outcome can reduce the value of an investor's portfolio due to buying at an excessively high price or selling at an excessively low price. An investor that tries to time the market to align his buying and selling activities with low and high points in market prices usually does not succeed, and instead generates a lower total portfolio valuation than a more passive investor.