!44: How to Pick the Best Time of Day to Buy Stocks

!±8± How to Pick the Best Time of Day to Buy Stocks

The Stock Market is very complicated. Just when you think you've got it all figured out, something changes right out of left field and you have to start all over again.

There are a few best practices that you can follow that seemingly give you a leg up on most investors, or at least give you a little bit of a head start...and sometimes all you need is that little bit of a head start! Am I right? Of course I am!

One of my most secret little tricks is timing. Most people don't realize that WHEN you buy your stocks can determine how good of a deal you will get! Hey, every little bit helps and if I can gain a few pennies here and a few pennies there just by making my trades during certain times during the day, you can bet your bananas that I'm going to do it!

And it's not just best times of the day, there are also best days of the week to trade stocks on as well. If you can believe it, there are even best days of the month and best months of the year. Don't believe me? Well, read on!

Let's start by taking some of the best times of the day... stocks generally reach low points every day at around 10:45 AM and also around 1:25 PM and then finally at 10 till 3 in the afternoon. If the stock market is generally rising, then these are the best times to buy.

Now let's look at the best days of the week. Mondays are usually bad days for the stock market especially Monday mornings. You can usually expect Tuesday to be a little bit stronger but Fridays tend to be the best days for stocks especially right at the close when stock prices often jump up little bit, so don't buy then!

The best days of the month are a little more tricky. The market is usually the strongest around the last day of the month, or at least the last trading day of the month. Generally speaking the first four trading days of the month are usually strong too. So keep your buying to a minimum then.

The best months of the year are very interesting. You can usually expect to see lows in the stock market in late June and also during October and November. June, because traders go on vacation in the summer... and October November because of the Thanksgiving holiday season. Because of these lows, it's often a good time to buy. It's often risky to buy stocks in September because they may be at highs that will go down because of the October and November low that I just mentioned. Often when January is strong the rest of the year will follow and vice versa.

Holidays are another strange part of the stock market. The markets are often strong one or two days before a holiday for some reason. The stock market also is usually strong right before the Fourth of July and also between the Christmas and New Year's period when many people buy and sell for different tax reasons at the end of the year.

So there you have several different scenarios when the stock market is strong and weak based on days of the week, weeks of the month, and months of the year as well as holiday seasons. If you don't believe me, it's easy to go back and check the historic data for those time periods and see for yourself!