What Time Should You Check the Stock Market?
Is there a good time to check the stock market? Does not matter – if you are a newbie or a professional in the stock market – the always asked question would be, “when should I buy or sell in the market?” Well, the basics of asking this question are – what are the basic rules for me to not lose any big bucks in the stock market. Well, timing the market could be a risky thing to do – as we all know, no one could ever predict the stock market. Even Warren Buffet would not fall prey to timing the market. But – there are a few things you could follow just to avoid the worst probable outcomes. Here they are:
What Happens In the Opening Hours of the Market?
Many of the traders would just need to trade for the first one to two hours after the stock market has opened for the day on any given day. So, check the live share market, and the first hour is typically the most turbulent and gives the most opportunities (and potentially the most risk). Professional traders frequently recognize that a lot of “silly money” is moving at this specific time – despite how harsh it could sound.
There are people who would be making trades based on what they read in the news or saw on TV the night before they went to bed is known as – stupid money. The data on which these people are acting is usually outdated, which means it is old news. Their trades have the chance to also cause big price swings in one particular direction. The professional traders then would take advantage of the excessively high or low price and push it in the opposite direction.
New-day traders are often given advice not to trade in the very first 15 minutes of the stock market’s day. It would sound like the advice for inexperienced traders, but for seasoned traders, the first 15 minutes would typically provide the best possibilities. In the beginning trends, such a time period can generate the day’s biggest deals.
What Happens When the Market Closes?
There are many day traders trading in the later hours of the stock market’s day, which is between the time 3 p.m and 4 p.m. EST. These traders would have had a long gap ever since the morning session – which will give them time to refocus.
When you look at the frequent intraday stock market trends – the last hour could look a lot like the first. Here are a lot of large moves and sharp reversals in it. Just like the first hour – many new traders would enter the stock market in the last hour. They would also be buying and selling according to the last day’s events, again – outdated. Stupid or silly money is on the move again and again. However, it is not as much as it was earlier during the day. It’s time for some more experienced money managers and day traders to gobble it up.
Are you a day trader, though? If yes, here is what you can do!
What do Day Traders need to Follow?
The regular trading begins at 9:30 a.m. EST. So, the hour ends at 10:30 a.m. EST, and it is most often the best time to start trading. It lets you make the most critical moves in the smallest amount of time.
As volatility and volume do tend to decrease at about 11:30 a.m., and here many professional day traders quit trading. Trades would take much longer to be completed, and the changes are quite smaller on a lower volume – which is not good for day trading.
During the weekday – futures trade almost 24 hours a day. So, here, if you are into day trading index futures like the E-mini S&P 500 (ES) and more, you would start trading as early as 8 a.m. and taper out at or by 10:30 a.m. This gives you a solid two hours of trading time, usually with a high-profit margin.
Trading Days and Months you Can Consider
Beyond the hourly grind, keep the broader picture in mind. Because the market traditionally tends to dip at the start of the week, particularly around the middle of the month, Monday afternoon is usually a favorable time to buy. Many experts advise selling on Friday before the Monday drop, especially if it’s the first day of the month or the Friday before a three-day weekend.
Similarly, prices tend to fall in September before rising again a month later. In general, October is a favorable month, and prices often rise again in January, especially for value and small-cap companies.
Does it Really Matter to Consider Time and Date When Trading Stocks?
Stocks have historically performed better or worse on certain days or months. These so-called market oddities cast doubt on efficient market theories. However, when these anomalies got more well-known and trade became more automated, research revealed that they had all but vanished.
To determine when it is a good moment to buy, look at the share prices of your chosen stock. Moving Averages is a technical indicator that shows you the range of your stock price, which is the highest and lowest it has ever risen and fallen, allowing you to make smarter decisions. Additionally – you need to keep an eye out for news about your stock. Stock prices often rise in response to good news and dividend payouts.
Conclusion
Well though timing the stock market is not very wise – it would be a smart decision to research and observe the charts, indicators, and more overstocks. While you are at that – the Time could also play a minute role in it, and you can utilize it.
