Ever since the opening of the Indian economy in 1992, investors have seen their investments grow steadily over the years. Sustained economic growth in India has consistently driven incomes of a majority of Indians. Naturally, the demand for advice and knowledge about diverse investment opportunities has increased significantly. One of the most popular choices of investment is in the stock market, especially for a long-term investment. Learn what is the best time to buy shares in this article.
Beginners in stock market investing usually refer to an online broker to invest in stocks or to buy shares. Moreover, there are a variety of online investment platforms that provide tips and guides on how to invest in equity, mutual funds and other such financial instruments. But before you buy stock as an investment, you have to first –
- Research and decide on the sort of investment you want
- Pick out an online platform and create your own brokerage account
- Decide on a budget and duration of the investment (mostly long term)
- Consider the difference between stocks and mutual fund, and invest in the more preferable option
- Keep a track of your investment portfolio from time to time
The returns of these largely depend on the way the market performs; however, investing in stocks for the long-term is certainly a safer option as compared to trading.
Best Time to Buy Shares:
Since there are constant changes and fluctuations in the prices of stocks throughout the day, the first and last hour of a trading day are said to be the times when opportunities are plenty. This can vary from day to week, to month. Have a look at the best time to buy shares below.
1. Best time of the day: Morning or Afternoon
The beginning of a trading day as well as its closing hours are the busiest, since the market volumes are fluctuating. Many people are able to notice patterns in market volatility and make a decision to buy or sell stocks, creating profits. These start timings can be very confusing for a beginner as it might cause them to get overwhelmed, which is why beginners are advised to buy shares a little later during the day when the market is relatively stable. This also causes the returns in the market to be predictable to a trained eye.
During the closing hour, the same scene as the opening hour is seen, with the market fluctuating. Trading during this time sees a lot of action especially within the closing minutes of the day. Thus, the middle of the day is favorable for beginners to buy shares. However, if you have enough knowledge about the field and experience with it, you can focus on buying shares during the opening and closing hours of the day.
2. Best day of the week: Monday or Friday
Seasoned traders say that Monday is the most profitable day to buy shares as the stock market has seen drops on Monday. Since prices are relatively lesser, it gives you an opportunity to buy more shares for investment, thus increasing your profit over time. Historically speaking, Mondays are seen as a good day to buy shares, as they are always accompanied by a change.
On the other hand, Friday, which is the end of the trading week, is considered a good day to sell stocks, since prices are comparatively better than what they are on Mondays. Since the market is closed for the weekend, the state of a lot of shares can change over the weekend. Hence to avoid any kinds of risks, people carry their transactions on Friday, as Mondays are comparatively uncertain.
3. Best time of the month and year
Around the year, global markets see changes during specific months. Over the years, October has seen positive changes in the market whereas September is the time when the market has been consistently down. Irrespective of the factors causing the fluctuation, the best time to buy shares during selective months can always keep changing.
Additionally, there is no specific day of a month that can be said to be ideal to buy or sell shares, as market trends will be fluctuating spontaneously. However, during the last few days of every month, the market sees a surge, making it a good time for profits. The middle of the month also sees a fall in the prices of stock, which can be a great opportunity to buy shares.
It is to be remembered that the busiest market timings are said to be the most profitable as they provide more opportunities for trading. Buying shares at off-times can also be profitable, but you must have enough knowledge about different stocks and the unpredictability of the market.
Overall, the whole concept of trading depends on the everyday state of the market, company decisions, and speculations. There can always be exceptions and new developments in the ever-changing finance world. With more time spent on trading, you can get enough experience and trained at recognizing patterns, which will help you get more profits.