Best time to buy stocks-WWNEED.COM
New or experienced investor, the main question every trader asks is: When is the best time to buy stocks? While many deny this, there are actually some basic rules that may reduce your risk and provide you with a greater chance of profit. Here are 4 simple recommendations about when is the right time to invest in stocks.
Best time to buy stocks
This applies more to traders who buy and sell their shares and make their profits in one day. It may seem tedious to monitor the market throughout trading hours for an opportunity to buy or sell, in addition to that it may:
Watching charts and graphs for hours on end can lead to mental exhaustion and confusion.
- Volatility decreases after the first 90 minutes.
- Stock trading volume drops after the first 90 minutes.
- You will encounter seasoned traders who may confuse you and distrust you.
With all of these factors in mind, the best time to buy stocks is 9:30 to 10:30 am. The stock market opens for trading at 9:15 am and for the first 15 minutes the market is still responding to the previous day’s news with experienced traders waiting to make their move. As a result, you are better off avoiding this 15-minute time period, and if you prefer more time to give your feedback to make a more informed decision, then extend your trading time to 11am maximum.
The most profitable day
Many forums will tell you that Monday is the best time to buy stocks, while Friday is the best day to sell stocks. The logic behind this advice is that stock prices will be at their lowest on Monday, meaning you will buy the stock at a lower price, and stock prices will be at their highest on Friday, meaning you will sell at a higher price. But remember, if everyone played this game, there would be no sellers on Monday, and no buyers on Friday. This would ruin the economics of supply and demand,and rest assured that there is no more profitable day of the week.
The best conditions
The best time to buy stocks is when the price of a particular stock is low. There is always the possibility that it will go down further, but buying low is much safer than buying high. Plus, when you buy a stock at a low price, there is a much higher chance that it will soon turn around and go up, giving you the opportunity to sell at a profit.
Other factors
Check the prices of the stocks you have chosen to know the right time to buy. An indicator called Moving Averages will tell you your share price range, all-time high and all-time low, helping you to make a better decision. Then don’t forget to watch the news related to the stock, good news and dividends usually lead to a rise in the stock price.
You should always be researching and observing charts, indices and news about your favorite stocks, and avoid spending every minute of every day in front of your screen trying to cash in on every opportunity, or you will end up with backfire.
Disclaimer: The content of this article is for informational purposes only. The information provided should absolutely not be considered as investment advice or a recommendation. No warranty is made, express or implied, as to the accuracy of the information or data contained herein. Users of this article agree that Money Secrets does not accept responsibility for any of their investment decisions. Not every investment or trading strategy is suitable for anyone. See the risk warning statement.