The Ideal time to Buy Stocks is when the Masses are Panicking

Ideal time to Buy Stocks

The ideal time to Buy Stocks

The perfect setup does not occur often and when it does one needs to embrace it with gusto regardless of the terrifying picture the experts and mass media outlets will go out of their way to paint.

 Ideal time to Buy Stocks is when the Masses are Panicking

Follow the blue arrows as that is what this narrative is based on:

The chart above is of the Dow. The best time to get in is when it is testing its 90SMA or trading slightly below it (as you can see this does not occur often) and when the MACD’s and RSIA are trading in the extreme to insanely oversold ranges as indicated in the above charts.  The Trend should be positive and as an added bonus the masses should be nervous, and that’s what took place in Nov of 2015 and early in 2016.

While this is the best time to buy stocks, there are opportune moments in between otherwise we would not have found plays such as VIPS, EDUC, CRON, etc. that yielded gains as high as 110%.

Other Factors to Keep In Mind

The best plan when it comes to investing is to keep it simple but have the discipline to stick to something that works regardless of the time factor; patience is a virtue that pays very well.   One of the best time to buy stocks is when the masses are panicking; case and point, when the stock is crashing.  When the stock market is crashing you will see the above pattern more often and you will see this pattern in manifest itself in some of the top names.

Therefore when the markets start to crash and the experts start to preach their sermons of doom, instead of joining the crowd and heading for the next cliff, start looking for top candidates. Ideally,  one should have created a list of stocks one would love to own well in advance of any market correction. The early bird gets the worm the late bird gets the bullet.

The best time to buy stocks according to Investopedia

First thing in the morning, market volumes and prices can go wild. The opening hours represent the window in which the market factors in all of the news releases since the previous closing bell, which contributes to price volatility. A skilled trader may be able to recognize the appropriate patterns and make a quick profit, but a less skilled trader could suffer serious losses as a result. So if you’re a novice, you may want to avoid trading during these volatile hours – or at least, within the first hour.

However, for seasoned day traders, that first 15 minutes following the opening bell is prime time, usually offering some of the biggest trades of the day on the initial trends. The whole 9:30 to 10:30 AM period is often one of the best hours of the day for day trading, offering the biggest moves in the shortest amount of time (a great and efficient combination). Extend it out to 11:30 AM EST if you want another hour of trading. A lot of professional day traders stop trading around then, as that is when volatility and volume tend to taper off. Once that happens, trades take longer and moves are smaller with less volume. Full Story

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