What is the Best Time to Buy Stocks?

It is often said that the best time to buy stocks is during market turmoil. Although true, this generalization is not definitive. Many factors can affect stock market prices, so price movements are not always predictable. Major news events and other unpredictable factors can affect price movements. There are several good times to buy stocks, and this article will help you decide when to do so.

The best day to buy stocks is typically the last day of the week before a holiday. This is when trading volume is highest. The last few minutes of trading are particularly active, with big moves occurring on high volume. Buying a stock on a Monday afternoon, is considered a good time to buy, as historically, the market will drop on Mondays. According to Investopedia, stocks tend to drop at the beginning of the week and the middle of a month, but this is not always the case. Some traders advise purchasing a stock on a Friday before a holiday weekend, because they expect the price to decline on Monday. The opposite is true, as December is generally a bad month to sell a stock.

For a beginner, the best time to buy stocks is around the middle of the day, when the markets are most stable, and at the start of the trading day, when the market is most volatile. Inexperienced traders, however, may not understand the proper timing to buy a stock, so it is best to consult an experienced trader who knows the market better. In addition to researching the historical performance of a stock, consider buying a stock when its price is at a lower price level.