When is a good day for your favorite Stock, Index, Commodity, FX or Crypto?
– Who knows, but we take a look at this phenomenon and much more for our members.
There are several theories and empirical studies that suggest certain days of the week may have an impact on traders’ performance in financial markets. Here are some of the main points:
Monday effect: This refers to the tendency of the stock market to underperform on Mondays. This effect may be due to negative news that is released over the weekend or a “hangover” from the previous week’s trading.
Turnaround Tuesday: This refers to the tendency of the stock market to rebound on Tuesdays after a Monday sell-off. This effect may be due to investors seeing the market as oversold on Monday and taking advantage of lower prices.
Midweek effect: Some studies suggest that the stock market tends to be stronger on Wednesdays and Thursdays. This effect may be due to positive news releases midweek or the fact that traders are more focused during the middle of the week.
Friday effect: This refers to the tendency of the stock market to perform better on Fridays. This effect may be due to traders buying stocks in anticipation of positive news releases over the weekend.
It’s important to note that these effects are not always consistent or predictable, and they may vary depending on market conditions and other factors. Nonetheless, some traders and investors may choose to incorporate these patterns into their trading strategies. More inside.