Many people believe investing is about 'timing the market' – getting in before prices rise, enjoying the ride up and then getting out before prices fall.

Yet anticipating these market moves can be extremely difficult because no two market cycles are the same. Investors' emotions make successful market timing even harder. While logic suggests the best time to buy is when asset prices are cheap or falling, many investors tend to buy when prices are rising and sell when they are falling. The emotions of fear and greed can lead us to buy and sell at exactly the wrong times.

A lot of long-term research suggests that market timing is difficult, even for professionals. This is why using a financial planner often leads to better investment returns. It's not just that expert advice helps you pick better investments; it's that it stops you chopping and changing. As an investor, you must allow time for the rises and falls of the market to take their course. The main message from investment experts is that it is better to buy and hold rather than trying to time the market. As the cliché says "It's time; not timing that counts".

Courtesy: Macquarie Adviser Services