The Insider's Guide of When to Buy Stocks
   Updated: 2019-04-04T02:43:24Z
    minute read

You've just recently discovered the beautiful yet scary world of the stock market. You were inspired by those individuals, who made fortunes from it and you want the share of the pie too.

Best Time to buy stocks
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You've devoted your time to learn the ins and outs of the market, the fundamentals and technical side of things. After several months of learning, you are now ready to get your hands dirty by doing the real thing. Then you are faced with your first hurdle, when should you buy and sell stocks?


Stock Market Sessions

The market is open during weekdays except for holidays. The first session starts at 9:30 AM until 12:00 PM while the second session starts at 1:30 PM until 3:30 PM. Knowing these timeslots are critical to your buying and selling decisions.


How do you use time to your advantage?

You are no longer a beginner in terms of knowledge. You knew that the morning session is mostly for buying sprees. You knew that the stock prices are going up or down at almost the same rate as your heartbeat.

Knowing this, you can narrow the stocks you want to play. If you are into day trading, then the most volatile stock will be your best pick. Most volatile stocks are in the category of penny, micro, and small capitalization stocks.

  • TIP: The first 30 minutes of the opening time is the most volatile.

The afternoon session is set up for selling sprees. Traders who are able to rack up stocks in the morning will sell it in the afternoon. Ideally, this is not the best time to buy the said category of stocks above if you haven't done a thorough study of the stock. This is also the time where most beginners are buying because of the feeling of being left out, which the big fishes and seasoned traders are happy about since it will push the price up. Giving them profit as much as possible before doing a sell-off, leaving the beginners no choice but to sell at a loss.

  • TIP: The last 30 minutes of the closing time is the most volatile.


To Wrap Things Up


  • The morning session is set up for buying sprees.
  • The Afternoon session is set up for selling sprees.
  • The first and last 30 minutes of the day is the most volatile.

If you are investing/trading big capital stocks, the best time for both and buying and selling decisions are in the afternoon.

Click for further resource Momentum Trading Summit by Edmund Lee - President and CEO of Caylum Trading Institute

Hope that this little knowledge can help someone out there.

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