Best Time of Day to buy Stocks: Monday is your new Future

Do not carelessly spending your money to buy a stock. It turns out it needs a theory to determine when the best time of day to buy stocks. Monday is the best time to do and Friday is the best time to sell. You might need an explanation about those days and you will get it below. Besides that, it teaches you how to determine the best time to buy and sell stocks in short steps. Why is time an important aspect of buying shares? It is because time is important and influences your investment.

Best Time of Day to buy Stocks

What Time of Day to buy Stocks: What happens to Monday and Friday?


Okay, it will start to explain why people choose Monday as their best time. You might do not know about the Monday effect. It is the effect of the tendency of the stock market that drops on Mondays. Additionally, it points to the gloomy mood of the investor because must go back to work again. To be honest, the Monday Effect starts to disappear and market exchanges help to diffuse it.

Besides Monday as the best time of day to buy stocks, Friday also needs to pay attention. It is the best day to sell stocks in a week. Friday becomes the best day to sell in short selling before prices dip on Monday. Generally, the stocks tend to more value on a Friday and Monday will cover your short. In a month, Fridays in the third week tend to be good in the US. The reason is the positive feelings of the stock markets tend to rise ahead before a long holiday weekend.

Best Time of Day to buy Stocks: Essential Things to follow


Well, it is clear that Monday is the best time to buy stocks and Friday is the best time to sell. Even though knowing the insight of the day is not enough and it is still the beginning part. It implies you should know other important things to do. Here, this page presents some essential things to follow to avoid getting the wrong companies:

1. Only need several hours to trade

Best Time of Day to buy Stocks

Do you think that the stock market opens every day on Monday? It seems yes but you only need several hours to stay inside. The best time (hours) to look for the best stock is only 2 until 3 hours. If you do it more than those hours, you may get metal fatigue and influence your performance negatively. Besides that, you will more risk making a mistake if you trade in 6 or 7 hours a day.

Indeed, each investor has a different power on focus and discipline. So, some of them keep being able to trade properly all day. Nevertheless, you must remember that discipline and focus are such as muscles. That is why there is a term of mental fatigue in this case.

2. Trade and buy in the opening

Best Time of Day to buy Stocks

Many investors, traders, and other sources recommend purchasing the stocks early in the morning. The best time during day to buy stocks are in the opening about at 9.30 a.m. Here, you need to spend your time for about two hours because of the trend market upward. Besides that, the first hour is the most unstable or volatile time to trade. It means the first hour gives you a big chance to know a lot of “Dumb Money” is flowing. 

For your information, the Dumb Money is the phenomenon of investors making transactions based on the newspapers or TV. It includes old news but it can create sharp price movements.  Commonly, the professional traders take profit from the highest or lowest price then push it back. Turn back to the hour to buy stock! If you are the beginner, avoid trading in the first 15 minutes because only the professional can utilize the chance. It becomes the biggest trades of the day on the initial trends for the experienced-investors.

3. Stay up to 11.30

Best Time of Day to buy Stocks

So, when the best time of day to buy stocks in a matter of hours? You have heard to avoid trading in the morning or the afternoon unless you are an experienced trader. The middle of the day around lunchtime or 11.30 is the most stable time for prices. At that time, the market volatility helps the inexperienced traders have a small chance to lose money. Honestly, 10.30 is the best time to purchase and trade because of the brief biggest movements takes place here.

Meanwhile, 11.30 am in the extension session if you want another hour of trading in ET (exchange trade). Indeed, 10.30 is the golden time to buy with a lot of profit potential. However, end the trade around 11:30 is when volatility and volume tend to taper off. Nonetheless, this best time of day to buy is only if the market suitable for your strategies.

4. Fight in Last hours of the day

The last hours differ from the times above but it refers to the time of 3 or 4 am. Even, numerous trading becomes particularly active with big moves on high volume in the last minutes. How does it happen? Firstly, a lot of traders regroup with new focus power after a long break since the morning session. Secondly, the last hour resembles the first hour to buy stocks. This period resembles the stock market pattern which full of bigger moves and also sharp reversals.

Besides that, many amateur traders jump to purchase or sell according to the event of the day. It becomes the best time of day to buy stock and see the dumb money floating around again. Although the amount is not as much as it was in the morning, none one can reject it. It includes the experienced money managers and day traders who are ready to take it.

It turns out you do not need to join in exchange market all day to get the best stocks to buy. You are only necessary to utilize current hours to look for the stocks easily. This page says that Monday is the best day of month to buy stock but it starts from 9.30 am to 11.30 am. Okay, happy trying and gain your success.