With the course of the week, markets usually tend to take an upward trend that peaks on Fridays. This means that it is a good idea to think about shorting stocks on Friday and covering your positions back on Monday when the market gets to lower levels.
Regular trading begins at 9:30 a.m. EST, so the hour ending at 10:30 a.m. EST is often the best trading time of the day. It offers the biggest moves in the shortest amount of time. Many professional day traders stop trading around 11:30 a.m., because that's when volatility and volume tend to taper off.
Stock turnover is generally lower and price movements less pronounced on the last trading day of week. Companies with bad news to report often take advantage of this slowdown by making their announcements on Fridays.
The Monday effect has been attributed to the impact of short selling, the tendency of companies to release more negative news on a Friday night, and the decline in market optimism a number of traders experience over the weekend.
Stock prices fall on Mondays, following a rise on the previous trading day (usually Friday). This timing translates to a recurrent low or negative average return from Friday to Monday in the stock market.
The upshot: Experienced traders often view Monday as the best day of the week to buy and sell stocks because of the time and pent-up demand since the last trading session the previous Friday.
Tech view: Market trend likely to remain positive, Nifty moving to 16,800 in near term.
It is always better to strategically invest your time. A lot of research has suggested that the best time frame for intraday trading is usually between 9:30 am-10:30 am. If you are a beginner, it is always better that you observe the market for the first 15 minutes and then start trading.
Yes, traders can trade stocks over the weekend. While most stock exchanges operate on a 9am-5pm and five days a week format, trading on weekends is made possible through so-called Electronic Communication Networks (ECNs). These enable investors to buy and sell during the pre and post market hours.
In short, the 3-day rule dictates that following a substantial drop in a stock's share price — typically high single digits or more in terms of percent change — investors should wait 3 days to buy.
Why Are Stock Prices More Volatile in After-Hours Trading? The number of participants in after-hours trading is a fraction of those during regular market hours. Fewer participants means lower trading volumes and liquidity, and hence, wider bid-ask spreads and more volatility.
Crypto-markets are well suited for traders who can only trade on weekends. In terms of open market hours, the Forex market is something in between the stock market and the crypto market. Forex is open around the clock, but only Monday through Friday.
Scalpers usually work within very small timeframes of one minute to 15 minutes. However, the one- or two-minute timeframes tend to be favoured among scalpers.
In reality, 5-minute charts are great for stocks with lower volatility. However, if you are trading low float stocks you will want to use a one-minute or two-minute chart to track price movement. While you are monitoring price movement on a lower level, you will also need to monitor the bigger trends.
Many forums will tell you that Monday is the best day to buy stocks, while Friday is the best day to sell stocks. The logic behind this advice is that stock prices are said to be at the lowest on a Monday (meaning you will buy shares at a lower price).