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3 Best Ways to Buy and Sell Stocks Beginner Investors Must Know

10 Apr 2022

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For those of you who are studying stock investing, you may ask: when is the right time to buy stocks and sell stocks? The answer is that it depends on how you position yourself, as a trader with short-term goals or as an investor with long-term goals.

Unlike traditional investors, a trader buys stocks not to slow down the gradual appreciation of his funds as traditional investors do.

As a trader, you need to make sure that you understand the fast turnaround of investments. Such as the right time to buy shares in the period of days, weeks, months, to quarters.

Because of this, traders have a very short time frame. Their analysis is generally broken down into hours, minutes, even seconds. Therefore, the day of trade being made becomes a very important factor when considering buying and selling shares.

To learn more about this, let's see the full review below!

When is the Right Time to Buy Stocks and Sell Stocks?

As an investor, the first thing you should check in the morning is probably the volume and market price updates for some of the stocks that are in your portfolio.

A skilled trader can definitely recognize patterns and then make profits quickly.

For traders , the first 15 minutes after the opening bell is prime time. The period 9:30 - 10:30 is often the best hours of day trading.

If you're lucky, the biggest stock price movements in a short period of time can happen. You can extend it to 11:30 if you want to add points in one more trading hour. Even so, many traders tend to stop at this hour.

However, as a beginner, it would be best if you avoid trading during the volatile hours, or at least in the first hours of the day. So, the right time to buy shares of course depends on how good your analytical skills are.

If you are not a trader, when is the right time to buy and sell stocks?

If you want to be a casual or traditional investor, then here are some good times to invest:

1. Quarterly

If you want to shop for stocks on a regular basis, you might consider buying stocks quarterly (3 months) once or as much as 4 times a year. . At certain times, you can start buying stocks that look cheap with supportive fundamentals.

According to some calculations, the best period to buy shares is in February, May, August, and November. In these months, the company has released financial reports, so that it can be considered when you want to buy shares.

2. When the Company is in Good Condition

When you decide to buy shares of a company, make sure you have done a fundamental analysis of the company first. You can do this analysis by reading news about the condition of the company whose shares you want to buy.

You can assess whether the company whose shares you want to buy is growing healthy or not. Find out also whether the company is experiencing a profit or loss.

In addition, also study the company's business plans, such as expansion, acquisition of new companies, or even business shrinkage. Don't forget to also see the performance of the company before deciding to buy its shares.

3. When a Company Has Good Prospects

Apart from fundamental analysis, you can also perform a simple technical analysis before buying a company's stock. The purpose of this technical analysis is to tell you that the stock you want to buy has a good buy and sell price.

Observe stock price movements through stock price charts. This chart can be taken into consideration in making purchasing decisions when the stock price of the company you want is low. Make sure your target stock also has good prospects in the future, so you know you made a purchase at the right time.

This is an explanation of the right time to buy and sell shares. If you are interested in investing, start with the lowest risk instruments such as time deposits from OK! Bank.

Hopefully this explanation of when is the right time to buy and sell shares will help you!