The difference between traditional investing and trading is trading’s short-term focus. The trader purchases a stock, not to hold for gradual appreciation, but to make some quick cash back. Day trading, as the name suggests, has the shortest time frame of all: analysis may be broken down into days, hours and even minutes. Even further, the time of day when a trade is made is even more important. Here are some of the best times for trading and buying stocks. 

Day (buy or sell): mornings and end of day

The stock market’s prime time is undoubtedly morning trading. The volume and prices see the most activity, and mornings reflect the news releases since the previous closing bell, which contributes to price volatility. A skilled trader may be able to see the appropriate patterns and make a quick profit, and a less skilled one would suffer the opposite.

For professionals, the first 15 minutes following the opening bell is the most important 15 minutes of the day. Generally, though, from 9:30-10:30, day trading experiences its peak volume, offering the biggest moves in the shortest amount of time. You can extend it out to 11:30 AM EST if you want another hour of trading.

The middle of the day tends to be the calmest and stable, as traders wait for further news to be announced. While others sit back and watch where the market may be heading for the remainder of the day. This is a good time for beginners to place trades, as the action is slower and returns are more predictable.

In the last hours of a trading day, the volume increases again. Full shape reversals and big moves can all happen again at this hour, from 3:00 to 4:00 pm.

Week (selling): Monday

This is what traders call the Monday Effect. For decades, the stock market has shown an odd tendency to drop on Mondays, on average. If you plan on purchasing, do it on a Monday for bargains.

Week (buying): Friday

In accordance with the Monday effect, Friday is the best day to sell a stock before prices dip on Monday. Especially if you’re interested in short selling.

Year (buying): market timing 

This really depends. Marketing timing is based on short-term price patterns and trying to pick market tops and bottoms in the course of a single day. By contrast, seasonality is about anticipating how the market will change in a given time of year and making a decision before any change occurs.

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