Purely out of curiosity, has anyone ever looked at whether there is an optimal time of day and/or day of the week, to place orders, in terms of share price? I have seen a couple of articles about this but nothing NZ based. Just curious to know what you guys think or have observed.
Purchase time of day and SP
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20-01-2020, 06:07 PMjustakiwiPurchase time of day and SP
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20-01-2020, 08:12 PMJay
I remember Phraedus saying that never buy at open, wait about an hour for the price to settle - applies more to Aus than may be here, same with selling or sell near the end of the day. I should do the same - a couple of times recently bought near open only for the price to fall away a little
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20-01-2020, 08:41 PMblackcapIf you never buy at open, would that then be an invitation to sell at open?Quote:
Originally Posted by Jay
I am of the opinion that it does not really matter what time of day you buy or what hour. Sometimes I thought I could see a pattern emerging with certain stocks for that pattern to be busted wide open by the winds of time.
If you are a long term investor (buy and hold) it is irrelevant, I am guessing only the traders would keep themselves busy with this type of thing. -
21-01-2020, 12:03 AMpeatBut it is important if there is 'a situation' (say a piece of news announced before trading opens) that you establish your strategy by setting limits on your orders.Quote:
Originally Posted by blackcap
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21-01-2020, 08:08 AMSnoopyAs a long term investor I agree with you Blackcap. All my purchases and sales are limit orders anyway. I have never bought or sold at 'market price' and never will. I determine what price I am prepared to buy/sell for and stick to that price. Sometimes my transactions take weeks to process. Sometimes when buying the share price gets away from me and my bid fails. If someone else is determined to bid more than I would that is fine. Sometimes my bids only get partially filled, although this is rare. None of these situations worries me. If I do sufficient homework beforehand, I know what price I am prepared to pay /'sell at' and I don't let some other jock on the market at an alternative price and time influence that decision. If the price goes down after I buy in, then I am not worried either. I still transacted at the price I wanted, and someone else got a better deal than I did - good on them.Quote:
Originally Posted by blackcap
SNOOPY -
21-01-2020, 08:58 AMpercy
Yes sell in the morning buy in the afternoon.
However I mostly buy or sell on announcements .
If the announcement is better than I thought, or a surprise upgrade I buy.
If it is worse than I thought or a surprise downgrade I sell.
Mostly I buy/sell at market.That way I get what I want or get rid of what I am selling.
Sometimes I will watch the depth,and buy what is on offer, if the number is close to what I want. ie I want 20,000 at 50 cents, and there is a parcel of 21,300 for sale, I buy them.If there is only 18,900 for sale,I just buy them. -
01-08-2020, 08:47 PMFerg
Hello
Old thread I know but I was wondering about this the other day - in particular the day of the week. I'm not a statistician but I looked at the NZX50 daily movements and whether it went up, down or was flat for each day from 2003-2020. Take from this what you will but I'm not sure it will change anything I do, although it appears that for 2020 Tuesdays are up more than they are down (up 73% of days, down 27% of days) and that Fridays are down more often than they are up.
https://imgur.com/a/cxotrIC
NZX50 Daily Movement 2016 Mon Tue Wed Thu Fri Overall Down 38% 37% 52% 33% 43% 41% Flat 0% 0% 0% 0% 0% 0% Up 62% 63% 48% 67% 57% 59% Daily Movement 2017 Mon Tue Wed Thu Fri Overall Down 37% 41% 44% 37% 47% 41% Flat 0% 0% 0% 0% 0% 0% Up 63% 59% 56% 63% 53% 59% Daily Movement 2018 Mon Tue Wed Thu Fri Overall Down 55% 49% 44% 46% 35% 46% Flat 0% 0% 0% 0% 0% 0% Up 45% 51% 56% 54% 65% 54% Daily Movement 2019 Mon Tue Wed Thu Fri Overall Down 45% 42% 45% 38% 37% 41% Flat 0% 0% 0% 0% 0% 0% Up 55% 58% 55% 62% 63% 59% Daily Movement 2020 Mon Tue Wed Thu Fri Overall Down 48% 27% 47% 64% 52% 47% Flat 0% 0% 0% 0% 0% 0% Up 52% 73% 53% 36% 48% 53% Daily Movement 2003-2020 Mon Tue Wed Thu Fri Overall Down 43% 45% 43% 45% 44% 44% Flat 0% 0% 0% 0% 0% 0% Up 57% 55% 57% 55% 56% 56% -
02-08-2020, 11:07 AMSnoopyHi Ferg and welcome to the forum. I don't see too much mystery in your observations. The NZX seems quite nervous and NZ investors are always looking over their shoulder to get their lead from the DOW. The statistical sell off on Friday is because NZ investors are worried some sell down might occur over the weekend in the USA while our market is closed and they want their money out of the market to de-risk that possibility. On Monday morning NZ time, markets in the USA are still closed. But by Tuesday, the US markets are again trading and with no crisis materialising, NZ investors feel happy enough to pile back into the NZX market for FOMO. That's how I see it anyway.Quote:
Originally Posted by Ferg
SNOOPY -
02-08-2020, 03:44 PMFerg
Thanks for the welcome. Interesting thoughts for 2020 but it appears the trend for 2020 is not matching 2019 where Fridays for 2019 went up more than down, and Fridays also exceeded the numbers for Tuesdays in 2019. Hence I'm not reading too much into the numbers - I would expect to see randomness and my untrained eye tells me it is (I'm not a statistician). An interesting exercise nonetheless.
P.S. I have been reading a lot of your posts. Keep up the good work!
:t_up: