Optimal Times for Stock Trading: Day, Week, Month Strategies
Which timeframe is best for stock analysis?
The best timeframe for stock analysis can vary depending on an investor’s strategy and goals, but many experts suggest that a longer timeframe, such as several months to years, tends to offer a clearer picture of a stock’s potential performance.
What hours are the stock markets open?
The New York Stock Exchange and NASDAQ are open from 9:30 am to 4:00 pm ET.
For me it’s 9.30-11 although I’ve read in some websites that’s it’s best to avoid the first half an hour due to too much noise but I personally find that if I wait until 10am I could miss a lot of opportunities. Thoughts?
I recently read Joel Greenblatt's "The little book that beats the market" where the author draws on Graham's value investing principles to purchase stocks of good companies that are undervalued. He developed a step-by-step process on how to purchase shares of 20-30 undervalued companies for a year and selling winners after holding them a few days more than one year and losers after holding them a few days less than one year (keeping in mind the capital gain cuts). It got me thinking about my portfolio and my question resulting from that was, if a stock is doing well and the company prospects are solid, should you still sell the stock? More generally, if the goal is long term investing (like Apple for example with a strong balance sheet and a solid market position and brand value), how long does it make sense to hold a stock before selling it?