Know What Is The Best Time to Buy to Stocks | My Espresso

What is The Best Time to Buy Stocks?

The stock market is a great place to generate profits from the shares of public companies. You need to create a broking account and step on your journey of earning high profits by trading the right stocks. When traders are aware of the best time to buy stock, they are able to develop a more successful trading strategy. Let us help you identify the right time for investing in shares to keep up with the varying pieces of stocks.

Published on 17 January 2023

The Best Time of the Day

The Indian stock market remains open from 9:15 AM to 3:15 PM. Intraday traders are people who purchase and sell stocks within one particular day. They consider the window between 9:30 AM to 10:30 AM as the best time of day to buy stocks.

The stock market responds to the events of when it closed within the first fifteen minutes of opening. Experienced traders wait for the first fifteen minutes to avoid rash buying and selling decisions. If you need more time to make keen observations, you can stretch your best time to buy stock till 11 AM.

The Best Day

If you want to know about the best time to buy stock, you need to learn about the most lucrative day of the week. Several forums mention Monday as the best day of the week for buying stocks. Moreover, Friday is the best day of the week for selling stocks.

The logic behind this is that stock prices are lowest on a Monday and the highest on a Friday. But if everyone stuck to this logic, then there would be no sellers on a Monday and no buyers on a Friday. Since this would mess up with the demand-supply economics, considering any particular day as the best for stock trading isn’t prudent.

The Best Months

December is usually considered the best month for investing in stocks due to the high growth frequency. One theory suggests that the holiday season psychologically influences traders to buy more instead of selling. Moreover, institutional investors vacation during this time and bullish investors have a stronger influence on market direction.

April is also a great month for the stock market. Several investors receive their tax refunds in April and use it to invest in good stocks. Due to the cash influx during this month, prices also go higher.

June, August, and September are usually considered an unfavourable time in the stock market. During the summer month, institutional investors are considered to be vacationing. However, the lack of holiday cheer reduces the liquidity in the market and leads to increased risk.

Final Thoughts

Traders should know that knowing the best time to buy stock is not the only criteria for generating profits as they are only based on historical results. If you invest in good stocks, you will be able to earn profits during other times as well. Keeping an eye for undervalued stocks and sudden price movements can help you earn profits even when you are not trading at the apparent best time of the day.

Chandresh Khona
Team Espresso

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