You can’t time the market. Give up. It’s too hard.
While I don’t disagree with this advice, it doesn’t actually address what conditions you would need to meet in order to be a successful market timer (without using quantitative approaches). So instead of writing off market timing, let’s ask, “When does market timing work?”
I kept asking the same question through my school, why does my school open at 9 am and end at 3.30pm. There is no why to this.
It actually used to be 9.55 am to 3.30 pm until 2010. Timings were then preponed to 9 am because market participants wanted to have our markets open earlier to sync with other Asian markets which opens earlier. I guess the exchanges also had an incentive in terms of being able to generate more revenue by keeping the exchanges open longer.
In 2012 exchanges introduced the concept of premarket from 9 am to 9.15 am to reduce the volatility at market opening. Check this post from 2012, feels like I wrote this yesterday.