Hi, It’s Terry Tran here from the FreedomTrader.com, the place to be if you’re looking at creating financial freedom safely for yourself and your family.
I recently got asked this question by one of our Freedom Trader Blueprint students;
Is there a particular time you should place your trade or investment during the day?
Simple answer is yes there is.
Best time that I have found over the years whether for investing or trading, is generally towards the last 10-15 minutes of the market, and if you can, even the last 1-2 minutes before the market closes.
Why is this?
A few reasons.
1. Market liquidity which is the volume of buys and sell, you’ll find that it’s the most active where buyers and sellers want to either take or close off positions
2.You get as close as possible to the true price of where the market wants the stock to be.
3. Many day traders and especially institutions who don’t want to take onboard overnight risk, they make sure they close off their books for the day.
The other best time is generally after the first 30-60 minutes of the market open, to allow the market to settle down abit especially if there has been a major market related development. This period also has quite a fair bit of liquidity.
On a further note, the best time to avoid is usually during lunch time, because that is when there is the lowest volume of stockstotrade changing hands and hence you may not get the true and fair price you want.
So just to quickly summarise;
If you’re looking for the best time to either buy or sell a stock during the trading day it is;
During the last 10-15 minutes before market close
An alternative is about an hour after the market opens
And lastly to avoid the lunch times as its generally, the quietest time of the market day of you want to get the best price possible for either the buy or the sale.
So, what I’d love you to do right now is, to like or share this if you found video this helpful.
And also tell me in the comments sections, What’s been the most useful for you?
If there’s anything I can do for you right now to help you with your investing and trading, please, type it in. I’d love to know.
That’s it for now. Talk to you soon!