Ideal stock trading time for investors

There are many different factors that lead to a good trading result. In addition to technical analysis, grasping new news, understanding the stock trading time will help investors have more advantages in the market.

1. Regulations on transaction time:

All stock exchanges in Vietnam open for trading from 9am to 11:30am and from 1pm to 3pm. However, this does not mean that investors have to wait until the exact time above to be able to trade. Investors can completely place orders and wait until the opening time, the floor will automatically match the order with the value that the investor has set. In case the order has not been matched, or is only partially matched, the order will still be kept until the next trading session, unless the investor cancels the order.

Vietnam stock trading time
Vietnam stock trading time

2. Best stock trading time of the day:

The best time of day to buy and sell stocks is often said to be the first few hours the market opens. The reason is because all the important market news of the day is included in the stock price in the morning.

All this activity is usually done for the first hour or two of the day – or even the first 15 minutes. As the days go by and the latest macroeconomic developments and market events have been factored into stock prices, trading volume and volatility diminish. This means that the opportunities that come with volatility are often at their peak shortly after the market opens, tapering off during the day (although activity usually occurs in the last hour of the day’s trading). .

If you trade stocks internationally it’s important to be aware, as different markets are open at different times, also depending on their time zone, so it’s important to know when the “time is right.” best” of your chosen market is in your time zone. For example, you can trade the FTSE 100 from 8am UK time, while trading the DAX 40 Index means 9am Frankfurt time (8am UK time). If you want to trade, the New York Stock Exchange (NYSE) is open from 9:30 a.m. Eastern Time, which is just at 2:30 a.m. UK time.

Stock trading
Stock trading

3. Best stock trading time of the week:

The best time of week to buy and sell securities depends on a number of factors – and investors should note that past performance (including the best day and time of the week to trade) is not guaranteed. guarantee future results. Normal trading hours for the stock market are Monday morning to Friday afternoon. Possibly the best time of the week to buy stocks is Monday, which is related to the Monday Effect theory.

One of the most popular and long-held theories is that the best time of the week to buy stocks is on a Monday. The rationale behind this is the overall dynamics of the stock market, through Monday morning. Two, will follow the trajectory it was in by the time the market closed.

So if an exchange or index is trending up on a Friday, the trend in normal trading says it is likely to continue in that direction, albeit often with lower returns, as the market moves forward. School reopens on Monday. However, some traders and investors believe that the market tends to go down on Mondays. This could mean that profits on Monday are much lower than on Friday, making Monday traditionally considered a good day of the week to buy back potentially undervalued stocks.

Meanwhile, possibly the best time of the week to sell stocks is Friday. If Monday’s markets are active again, it is more likely to be in a downtrend (for which there is little evidence, although many traders and investors certainly think so), then Friday is the opposite. again.

Whether because of the optimism over the weekend or because the news on Saturday and Sunday hasn’t yet priced in the markets, many traders feel that Friday sees stocks and indices overvalued. . This could make Friday a good time to sell stocks, hoping for a slightly better price than they can get on Monday. Remember, however, that each week should be self-assessed for value and potential risks – whether it’s Friday or not.

While Fridays could theoretically be a good day to sell stocks, traders and investors overlook the broader market landscape and fundamental analysis in jeopardy. This also means a higher risk of loss.) So if an important macroeconomic event like an election happens on Tuesday, it will most likely be the best day of the week to do so. transaction.

HoSE . Exchange
HoSE . Exchange

4. The best stock trading time of the month:

Unlike times of day, there is little clear evidence of the “best” or “worst” days of the month to trade or invest in stocks – this largely depends on the month in question. . However, some traders speculate that, on average for the month, there may be an increase in stock purchases around the payday period, so at the end of the month and at the beginning of the new month, when the paycheck has arrived. and some traders and investors have a little extra disposable income to spend trading and new stocks.

If this is true, the best time to sell stocks could be around the end or beginning of the month, when buying interest rates are high, which can drive up stock prices. Therefore, mid-month could be a good time to buy stocks as the price could be lower. That said, this data comes from the past and, as we all know, past performance is not an indicator of future success or failure – so make sure to judge for yourself, based on rigorous analysis.

Epilogue:

In summary, traders think that the best stock trading times to buy and sell stocks during the day are likely to be in the morning, right after the market opens, and for the next few hours afterward. The best time of the week to buy stocks is said to be Monday, when there is a higher number of people in the market – this is known as the “Monday effect”. Another day often considered the best day of the week to sell stocks is Friday, when trading volume and investors are lower but stock and index prices can be higher.

Important things to remember when considering stock trading time Ideal for investors is that past performance is never an indicator of future results and each day, week, month and hour should be analyzed at your own discretion to determine the best time. yours.