If you've been in the stock market for any length of time, you know that the most critical question to ask is, "what time of day should you buy stocks?" There is a good reason the question should be the first one you ask. The answer may surprise you! Most day trading stops around noon because that's when the market slows down the most.
Think about this for a moment. Would you invest in and buy a company just because it closed at a particular time? It just does not make sense. You see, with the high level of technology we have today, investing and trading have become very accessible. You don't have to go to an office, or even stay at home in front of a computer all day.
So, when you ask the question of "what time of day should you buy a stock?" think about the extreme hours the market opens and closes during the day. In the morning, the market typically begins at half-past nine o'clock in the morning. When it opens, it means it's incredibly active, meaning that day traders should start their day by buying and selling stocks no matter what the weather is doing.
The first hours are the most volatile. Volatility means it's the time when most people first start losing money. It's also the time when the market "turns on." Remember, the first hours are the most volatile, so take advantage of the time by being a day trader!
The second most active hour is the last two hours. The markets are closed during the night, so everything is slow down during this day. When the markets open back up after the night, traders can make the most money by being active and buying and selling during the late part of the day. You will be astonished to see the change this makes to your bottom line!
9:00 a.m. to 3:00 p.m