Stock Market Tips For Beginners

Stock Market Tips For Beginners: Best Time To Buy

Updated Feb 11, 2023

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.

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 MACDs and RSIA are trading in the extreme to insanely oversold ranges, as indicated in the above charts. The Trend should be positive and as a bonus, the masses should be nervous, and that’s what took place in 2008-2009: Nov of 2015 and early 2016 and during the Covid Crash.

While this is the best time to buy a good stock, 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%.

Stock Market Tips For Beginners: More Tips

The best investment plan 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 times to buy stocks is when the masses are panicking, case and point when the stock is crashing. When the stock market crashes, you will see the above pattern more often and see it 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 before any market correction. The early bird gets the worm the late bird gets the bullet.

Investopedia On Buying Stocks

The early morning trading hours can be characterized by unpredictability and volatility as the market incorporates all news releases since the previous day’s close. It is advised that novice traders exercise caution during this period to avoid significant losses. Conversely, experienced traders often view the first 15 minutes following the opening bell as an opportune time for significant trades based on initial trends.

From 9:30 to 10:30 AM EST, known as the first hour of trading, day traders frequently encounter substantial price movements within a short duration. For those looking to extend their trading window, trading until 11:30 AM EST can also present opportunities, as many professional day traders tend to curtail selling activities during this time when volatility and trading volume diminish. Beyond this point, trades tend to take longer to materialize, and price movements become smaller with reduced trading volume. Full Story

Buy when Blood Flows

Vast amounts of liquidity are already being added to this market, but you have seen nothing yet. Helicopter money is about to become a reality, and regardless of the mantra, it is different this time. Nobody can fight a fed determined to unleash the mother of bailout packages.

The Fed is now buying ETFs to support the market, don’t be surprised if they start to buy everything under the sun to help this market. This exercise will prove to those who want to improve their understanding of Mass Psychology just how susceptible individuals are when you force them to embrace a narrative by making it look like you are helping. Watch the video by Noam Chomsky titled “manufacturing consent”; it’s straightforward to find on Youtube.

Well before this pandemic hit, we stated that the United States would probably run a deficit of 100 trillion dollars before the masses woke up, and at that time, we had not even hit 20 Trillion. We might have been too conservative in our estimates. Massive stimulus programs will be unleashed. Don’t be surprised if a multi-trillion dollar infrastructure program is launched to save the economy and the average Joe from destruction.

Stock Market Tips For Beginners Tip 3: Buy The Fear

The crowd is panicking, but insiders are loading up on stocks. Who should you listen to? If you don’t know the answer, you should not be in the stock market.

The Vickers’ benchmark NYSE/ASE One-Week Sell/Buy Ratio currently stands at 0.33, while the Total one-week reading is at 0.35. These readings indicate a notable trend of insiders not only buying shares but doing so effectively. Similar behaviour by insiders was observed in late December 2018, following the stock market crash on Christmas Eve, during early 2016 when stocks experienced a correction, and in late 2008/early 2009. https://yhoo.it/2TV0cE2