On which day we should trade to get better returns in Swing Trading
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Best Day for Swing Trading
The “best” day for swing trading can vary based on the market sentiment & various other factors, but generally, it’s important to understand how the stock market works in week days.
Market Working Days:
Monday to Friday are standard trading days in the Indian Stock Market.
The market is closed on weekends, so no trading happens. The events happened on these days impact impact the opening prices on Monday (trading day).
As per the observation by the expert traders in the field, the market behaves as per the below lines.
Best Days for Swing Trading in India:
We can say Monday and Friday are the best days for Swing Trading in Indian Stock Market as there is huge volatility in the market.
Monday: Often, stocks react to news and events over the weekend, making Monday a significant day for swing traders. There is a huge chance of Market Volatility which is a good sign for swing traders.
Friday: Most of the traders close their positions before the weekend, making Friday afternoons crucial for assessing the market’s direction.
Every Day is a Best Day If you Have a RIGHT STRATEGY
You must realise that swing traders take every opportunity of the volatility, and be a day for the sellers market or the buyers market. If you become a seasoned investor then you will take the advantage of the resultant trading signals that swing as per the market volatility.
So, you will be taking advantage of the swings that flow in your direction and also utilise the situations when the swing flow moves in an opposite direction to your stock positions.
For any prevailing stock market situation, you will be able to decide a day to be gainful in swing trading only after comparing your trade positions/trade plan with the trading signal patterns.
To check it, you must pick the best time frame daily to make precise calculations and decide if it to be a better trading day or not.
A daily time frame enables you to analyze the day’s dominating trend, and show up the possible key levels of the day’s stock market. Daily time frame is less prone to curve fitting, and it works better on the historic data which is more likely to work better on future data.
Expert swing traders consider a 4-hour time frame to be sufficient in understanding the daily trading patterns.
And, checking over the time frame less than 4-hour may not provide you the right output of the set objectives. Even if you do so, the results will display a noisy, erratic picture that may not be enough to show the true direction and volatility of the stock markets.
Therefore, if you treat the 4-hour time frame daily then the charts become a reference to analyse your positioned stocks for days, or weeks together.
Best Days for Swing Trading in a Week:
At the outset in the stock market, you will observe that the beginning of the week, Monday, Tuesday, is considered as buyers markets,
Wednesday, Thursday, the markets run stable and goes sideways (most of the time).
On Friday the markets gear up and volumes of sales go up and they do become sellers markets.
Monday & Friday are the Best Days for Swing Trading
Tuesday to Thursday, markets are very stable, it is not optimal to swing trade on these days. These days stable because the initial market reactions happens on Mondays and Fridays.
Swing traders can rather watch the Important Economic Events, earnings reports, or economic data releases. These events can significantly impact stock prices and may give good opportunities for swing traders.
Days when a company releases its earnings report is also a important day, since the stock prices are highly volatile
Product Launches or Announcement days are also a important days for swing traders.
Close Positions on Weekends:
As said, markets are closed on weekends. It’s best to close the positions over the weekend due to market gaps on Monday.
The best day for swing trading depends on market conditions, economic events, and company-specific news. It’s vital to stay informed, analyze market trends, and plan your trading accordingly based on your risk tolerance and strategy.