What’s the Best Time to Buy Stocks?
“You’re just going to get the same thing you always get… aren’t you?” I said to my friend of nearly 15 years.
During our friendship, I’ve become aware of some of his peculiar – but ultimately innocent – habits.
But as a foodie of sorts, this one routine bugs me the most.
Every time we go to a restaurant, he reads over the menu for several minutes in a vain attempt to find something his palette has never experienced.
Alas, he chooses the same thing every time.
Occasionally I point out this odd behavior.
“No!” he responds. Feeling the weight of my accusation, he usually picks up the menu for a second look.
No surprise there. This too is a familiar response.
Of course, when the waiter arrives he proceeds to utter something along the lines of, “I’ll get a bacon cheeseburger with fries… medium well… and a Coke.”
He’s a good friend… but highly predictable.
His behavior, however, is not as benign as one might think.
We are creatures of habit. Our habits define who we are and where we end up in life.
Obviously, not all habits are good. Developing the wrong ones can derail us from the path to success.
But I believe we are the masters of our own fates. We have the power to change our ways – and potentially the quality of our lives.
That’s why I’m fascinated by the daily routines of people around me. Understanding their habits helps me appreciate what makes them who they are.
Take Emerging Trends Strategist Matthew Carr, for example.
I’ve noticed that my friend and colleague has several peculiar habits…
But one stands out the most.
He buys stocks at 10:15 a.m. ET.
Not a minute earlier. And rarely long afterward.
At first, this seemed like an arbitrary choice. But as it turns out, research shows that trading earlier in the day – before 10 a.m. – is one of the worst things you can do.
When the market opens, stock buyers and sellers see the widest gap between bids and asks.
“Sellers are asking for the highest prices right after the morning bell,” Matthew told me. “In other words, the gap between the sellers’ ‘asks’ and the buyers’ ‘bids’ is the widest first thing in the morning, which is bad for investors.”
However, soon after 10 a.m., that gap begins to shrink dramatically.
“I believe you’re going to get the optimal buy price around 10:15 ET,” he said.
And not a minute before.
It’s a peculiar – but effective – habit that Matthew developed for maximizing his profitability in the market. And it’s not just for stock trading.
He uses the same principle for trading options, and it has proven highly effective.
But there’s more…
Matthew prefers to buy stocks on Fridays.
Once again, the data backs him up.
In recent years, Fridays have shown the highest average daily return over other weekdays – nearly three times greater than the next most profitable trading day, Tuesday.
And it’s habits like these that have helped not only Matthew but also his premium research subscribers collect massive gains in the market.
Like the 48 triple-digit winners Matthew’s readers have seen so far in 2018.
Personally, I’m starting to incorporate Matthew’s strange ways into my own investing habits.
I encourage you to do the same.
But I want to know… Do you have any trading habits you’d like to share?
We would love to hear about them. Feel free to share in the comments.