Are Mondays the best time to buy stocks for short selling?
Asked 4 years ago
I'm starting to explore different stock market investment techniques and short selling caught my attention. It looks like Mondays are the best times for buying stocks, is it?
Andia Rispah Igobwa
Thursday, April 08, 2021
Friday is the best day to take a short-selling position (if stock prices are higher on Friday), and Monday is the best day to buy stocks.
Even though there is little evidence for such a market-wide effect, some people still believe in the Monday-Effect. Anecdotally, traders say the stock market tends to drop on Monday. Maybe because most bad news is often released on weekends or because of investors' gloomy mood at returning to work - which is evident during the early Monday trading.
If you're interested in short-selling, Friday is the best day to sell stocks before prices dip again on Monday.
Thorsten Steins
Friday, May 07, 2021
Hello,
Whether Monday is a very good day to invest in the stock market is something that is hotly debated among investors. Generally it is true that it is the start of the week and therefore the prices are still "fresh". However, this can have both advantages and disadvantages.
Many investors claim that at the end of the week, prices often fall a bit. In this case, it makes sense to take advantage of the lower price right at the beginning on Monday before it - perhaps - rises again in the course of the week. In addition, a lot of information about stock companies often only becomes known at the weekend. The start of the week is then of course ideal to react early to possible information.
On the other hand, prices only develop in the course of the day, which can possibly lead to unexpected price fluctuations. A not inconsiderable risk for investors.
Please follow our Community Guidelines
Related Articles
Related Posts
Andia Rispah Igobwa
How Many Shares per Stock Should I Buy?
Andrew Moran
How to Know When to Buy, Sell or Hold Stocks
Can't find what you're looking for?