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James Marsden Hurst 1924—2005

Transactional timing

Choosing the right moment to buy and sell: the core of the Hurst method, distinct from passive investing.

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In plain terms — It is not enough to choose which stock to buy: when you enter and exit matters. Timing is that discipline.


Definition

Transactional timing is the ability to identify when a price is relatively low (buy zone) and when it is relatively high (sell zone), exploiting oscillations instead of suffering them.

Hurst: «buy low, sell high» is useless without answering the question when.


Example — You buy at $20 and sell at $40: you double. If it takes 20 years, you earn ~5%/year. If it takes 6 months with readable cyclicity, the annualized return is a different world (see compounding-and-trading-interval).


Timing vs investing

Passive investing Hurst timing
Key question Which company is solid? When does the favorable cycle start/end?
Horizon Years / decades Weeks / months (even days)
Oscillations Noise to endure Signal to read