Do you want to make more money? Come on, who doesn’t? People keep finding the easiest shortcuts to earn more than their regular incomes. The urge to find out the ‘shortcut’ often throws the investors into the lap of stock markets. But there is no actual ‘shortcut’ to begin with.
This article will talk about how to time your trade and figure out the right time to invest in the right stock. Let’s get rolling.
Stock Market Hours
Before starting the discussion, it’s important to know the stock market hours, especially if you are a first-timer. Here is a list of the standard U.S. stock market hours for NASDAQ traded stocks and NYSE (New York Stock Exchange).
Pre-Market Hours: It usually starts at 8 am EST, but trading can start as early as 4 am.
Regular Market Hours: The most sought-after trading session runs from 9.30 am EST until 4 pm EST.
After Market Hours: The after-market starts when the main market closes at 4 pm EST and roughly continues until 8 pm EST.
What Is The Right Time To Buy Stocks?
Every trader has a different style as they follow different trading timeframe. For instance:
If you are going for a long-term trading style that has a multi-month timeframe, some months might produce better results than the others. You have to keep calm and check the monthly progress.
A swing trader means that you hold stocks for two to twenty days or so. You might know that stocks drop on Mondays and form a swing low. It might be your potential buying point based on your strategy.
As a day trader or a short-term swing trader, you must know that a day has a few ‘best times’ to buy a stock. Usually, this is around the opening and closing hours when you can find the bulk trading volume.
Anyway, here is crystal-clear final guidance for you. In reality, there is no ‘best time’ to buy stocks. It’s all about your strategy and your intuitions.
Why Does Timing Matter When You Are Buying Stocks?
Let’s ensure you understand why timing a stock is the key part of your trading strategy. When you buy a stock, you want it to climb high, right? Most investors want the price to rise right after buying the stock. No one likes to wait for a stock that doesn’t move, or worse, goes down the ladder.
So, how can you time your trading game? You must hear things like ‘nobody is able to time the market’ or ‘trying to time a trade is a mistake’ but hold on! The old-school naysayers, who usually buy underpriced stocks and then sit on those for decades, say these things. They usually don’t need to time the market as their goals are not as strong as you. As you are reading this article, you are perhaps more interested in actively trading than holding a stock for the next 20 years. Here is a list of top times to buy a stock based on the expert’s advice.
Top Times To Buy A Stock
The first two hours of the trading
The last hour
The pre hour and the after-hour
When you feel the most confident about investing in a stock
Wrapping It Up
Have you tried any of the stock buying tricks mentions above? If no, give it a try. If yes, let us know how is it going in the comment section. For more investment tips and hacks, keep an eye on our space as we keep researching trading styles and dropping our tips here.
