Investing in stock is seen as one of the most viable ways of investment. Here are some great tips for successful dealing in stocks:
- The apt time to trade “at the market” is generally in the afternoon between 1 and 2:30pm: By this time, the entire country is working, which includes the West Coast and everyone has an equal chance at digesting the crucial news of the day. Government statistics that is shared by the government is always released in the morning and so are a lot of the reports on corporate earnings.
- Make sure you never place market orders prior to the trading day opening: When there is an opening bell, a lot of strange things happen and you could end up paying a lot more than you intend to purchase, or you may end up getting way lesser than you expected on the sell side. This can remain a risk with the market order, but it will be all the more accurate at the opening, when such orders start piling from traders who were reacting to the previous night’s news. In case you trade at the opening, you can protect yourself by getting a limited order.
- Make sure you check out the bid size and research into the ‘ask size’ for any of the exchange listed stock prior to entering a sell or buy order: An accurate real time quote system will allow you to know only the latest price of stock, but even the ask price as well as the bid price and the total number of shares that are being bid for or being sold for those specific prices. When the ask price is lesser than the bid, it happens to be a sign of upcoming demand for that specific stock, so you should make sure you do not hold out for too long if you plan on buying. With the same token, a huge portion on the ask side will imply that there are plenty of sellers who are eager to get out. Do not dilly dally if you intend to sell. But if the ask sizes and bid sizes are nearly equal, then it would be a perfect situation for keying the exact limit order halfway between the ask price and the bid price. There are chances that your order could get executed right at the middle.
- Ideal time to buy stocks would be between 18th and the 22nd: This is when the cash flow in the market as well as the prices is at its rock bottom. The perfect times of the month to sell are either the first and last two days. Apart from that, you should be able to be a very sharp and aggressive buyer during October and September when the market witnesses a dip. Make sure you do most of the selling in April as well as in early may.