Secondly, timing the market entails aggressive trading in the market and that entails higher cost. This higher cost comes in the form of higher transaction charges, higher statutory charges, impact costs, execution losses and capital gains tax. When all these risks are added up, time in the market works better than timing the market.

Thirdly, investors are social humans and tend to be driven by crowds. When you adopt a systematic approach to investing, you do not bother overly about what other traders are doing. On the contrary, if you are frequent trader trying to time the market, you tend to follow the herd and act based on instincts rather than on hard analysis.

Fourthly, when you are frequently moving in and out of the market, there are times when trades go against you. That is when traders tend to panic. Unfortunately, the investor who panics tends to subsidize the investor who does not panic. If you are a disciplined investor in the market, you will actually benefit.

Lastly, when you try to time the market, volatility becomes your enemy. On the contrary, when you are disciplined, then volatility becomes your friend. That is one of the key reasons why time in the market works better than timing the market.