The Sensible Stock Investor then uses the Timing Outlook to influence--but not totally determine--his or her decisions about when and whether to buy, hold, or sell particular stocks. The Timing Outlook is used in conjunction with the other tools of Sensible Stock Investing. The whole toolkit--selecting excellent companies, valuing their stocks, maintaining a well-rounded portfolio, using sell-stops, and so on--creates a sound latticework of complementary techniques. These techniques lead to superior results, principally because they help you to manage investment risk.

A word about psychology: The Sensible Stock Investor creates all his or her tools as objectively as possible--when he or she is thinking most clearly, not in the heat of a fast-moving market. Psychologically, it can be hard to follow any system which is giving a seemingly non-intuitive signal. But that's why you have a system in the first place: So you can follow it when objective thinking is most difficult. The Timing Outlook helps take emotions out of the equation. That's a good thing, because in finance and investing, emotions often point in the wrong direction. Level-headedness usually wins out.

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