According to research from CNBC, if someone had invested $10,000 in the S&P 500 index at the beginning of 2005 and left the investment untouched, it would be worth $71,750 by the end of 2024, yielding an annual return of 10.4% over that period. However, if the person investing the money decides to buy and sell the asset, they would’ve lost out on significant returns.
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The article noted that if they missed the best 60 days on the market between 2005 and 2025, the asset would be worth $4,712, a return of -3.7%. While selling off stocks makes sense when you’re looking to liquidate because you want to access the funds, you want to ensure that you don’t miss out on potential returns.
If you’re thinking about trading stocks, we will break down the worst and best days of the week to do so based on expert recommendations.
What Are the Worst Days To Trade Stocks?
George Kailas, the CEO and co-founder of Prospero.ai, an AI-powered investing insights platform, shared that historically, Mondays have often been the weakest day for markets.
This phenomenon is sometimes referred to as the “Monday Effect,” where stocks tend to open lower at the beginning of the week. He emphasized that factors such as weekend news, investor sentiment and traders adjusting their positions can create downward pressure on the market. For active investors, this can make Monday a less favorable day to sell.
As a short-term trader, you want to be aware of this trend so that you don’t sell off at the start of the week. Julia Khandoshko, CEO of the European broker Mind Money, added further insights on the weekend effect.
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“News is accumulating while markets are closed during weekends, and this results in prices being dragged lower at the open on Mondays,” she said.
After processing news all weekend long, investors may decide to sell on Monday, which could bring the stock price down.
The day that you trade stocks will also depend on whether you’re looking to buy or sell. If you’re a short-term trader, the trends can help with timing so that you avoid the weaker days for selling and seek out better days to invest in stocks. For example, Monday may be the worst day to sell stocks, but if you’re looking to invest in a company, you can buy shares of it on a Monday to buy in at a lower price.
The Best Time To Trade Stocks
What’s the best time to trade stocks to maximize your returns? Kailas pointed out that Tuesdays through Thursdays have historically shown stronger performance, with Fridays often seeing a bump as traders position ahead of the weekend. He publishes a newsletter for his business on Thursdays because he feels that this is the day when investors are most engaged and active.
Benzinga reported that the best time to sell a stock is on a Friday, right before the trading session closes, because the logic indicates that stocks have been actively moving all day and have likely reached the highest price already. It’s also believed that the relevant news for the company has already been released and reflected in the overall market.
The Benzinga article also noted that, although the Monday effect has diminished over the years, it may still be beneficial to consider waiting for the decline to occur before buying shares on that day to secure the best price. Khandoshko believes that Tuesdays are the best days to buy stocks because investors have had time to digest news while overall sentiment resets, making it less stressful to invest.
The Impact of Trading Stocks on Specific Days on Your Portfolio
Many experts have noted that timing the market is impossible and that it’s better to focus on staying invested over time. Kailas emphasized that these trading patterns are significantly less important for long-term investors. He added, “The bigger drivers of portfolio growth remain earnings, interest rates and diversification strategies. Trying to perfectly time trades by weekday can lead to overtrading, which hurts more than it helps.”
According to an article published by J.P. Morgan Wealth Management, it’s challenging to determine which day of the week is actually the best for buying or selling stocks because there’s a range of factors that can affect the volatility on any specific day. For example, overall economic fears, significant global issues, holidays, or unexpected developments may cause changes in the stock market. As we’ve seen over the last few years, it’s impossible to predict when breaking news will occur.
An article published on Chase.com pointed out that the following factors are more important than the day of the week you choose to trade stocks:
- The company’s fundamentals. You’ll want to review the fundamentals of the company, such as revenue, debt and the management team, to determine if it’s the right time to buy or sell.
- Overall market trends. You’ll want to pay attention to inflation data, the jobs report and interest rate decisions as these could cause short-term fluctuations.
- Your personal risk tolerance and time horizon. You want your portfolio to align with your personal goals and expectations so that you don’t make rash decisions.
As always, we recommend consulting a trusted financial advisor before deciding how or when to invest your money to ensure that your investment plan aligns with your situation.
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This article originally appeared on GOBankingRates.com: Don’t Trade Stocks on This Day of the Week
