DECIDE WHEN TO SELL TIP #2: SELL AT THE OPENING!
SELL AT THE OPENING: The best time to sell is often at the opening after a strong close the previous day. Your sell order can be placed during the quiet hours when the stock market is closed and your mind is clear.
For many investors, this is the easiest way to sell at a good price. And while bad news could crop up overnight, there is more often than not some sort of carryover from the previous day’s activities in the market the following morning. Placing your order to sell before the opening of trading is the least stressful way to get out of profitable positions and, in many cases, at the best price of the day. This is particularly true when the previous day’s strength is based on valid fundamental news rather than on pure speculation or anticipation of favorable data.
Comment: This is one of my favorite times to sell. And while I may not sell all of my positions at the opening, I will certainly lighten up a significant number of shares if the previous day had a spectacular upside move with strong close. It’s a way of getting out before the market has time to reconsider and change directions. It also catches a lot of public money trying to pile in at the opening so that they don’t miss out on an obvious rally fueled by good news.
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“Morning markets are the most active and the most liquid. They are largely public. Midday markets are thin and quiet. Most markets get more active and liquid in the afternoon prior to the close, but the activity is largely institutional.”
Dean Lundell ~ Author and professional trader