SCOTT WELSH TRADING BLOG

The Most Profitable Day Of The Week

The Most Profitable Day Of The Week

December 13th, 2018

I love the stock market.

It’s how I began my trading journey.

I love reading IBD and Barron’s and annual letters from Warren Buffett. My favorite trading book of all time (The Little Book That Beats the Market) isn’t about the interest rate policy of the Bank of Japan.

It’s about the stock market.

Furthermore, I love walking into a Home Depot store while owning Home Depot stock. I get to buy something useful and help my stock portfolio at the same time!

And I love watching Jim Cramer (though I don’t do it much anymore).

I love it because it’s–more human.

There’s an easy reason a stock goes up or down. And it’s backed by a company filled with people you might even know.

When a stock goes down, you can say, “Yep, that makes sense. The company had a bad quarter and the economy is slowing.”

Of course, that doesn’t mean we always get it right. We can think AAPL is going up and instead iPhone sales slow down, and it stops going up.

But, after the fact, it makes sense.

We may not have been able to predict that there was a massive rebound coming early in 2009, but it makes sense. The economy started turning around, and the market took off.

In the stock market, the cause and effect is real and understandable. We can see the factors in a stock success everywhere around us in our daily lives.

We can find investments that can 10x our money in the mall, for crying out loud.

We can’t do that anywhere else.

I dare you to figure out why the AUDUSD went down 300 points in the middle of the night last night.

Oh, you say reason was the domestic figures from retail sales caused a minor fluctuation in the short term bank lending rates?

Right.

Why did the CHFJPY cause us a $1,000 loss yesterday?

Because the European legislature voted a 1/8th decrease in the long term capital gains tax of foreign multinational corporations?

That’s fun.

That’s one thing that’s never changed for me in fourteen years of trading. The stock market is fun. Even when I lose.

It’s fun because, like I said, there are normal human reasons behind the moves.

For example, not every day in the stock market is profitable. Some days are way better than others.

In fact, according to my research, one day stands far above all the others when it comes to profitability.

The day?

Tuesday.

Tuesday is the most profitable day.

The question is why?

Now there’s a small chance that Tuesdays are just randomly more profitable than the other days. There’s always that chance.

But there also might be a human reason for it.

Using the Indexes, if you had to guess, what’s the worst day of the week?

Monday. How’d you do?

It makes sense. Over the weekend is when emotional people get all worked up. We had time off from the market to get more happy or more sad, and it just builds to the point where we just can’t take the pain anymore or we need to buy more of that right now before it’s too late!

Then Monday opens and off we go. The pent-up craziness unleashes itself on the market in one way or another. For that reason, Monday is not a profitable day.

But Tuesdays are different. All the emotional trades are over. The dust has cleared. Now the calm traders and calm algorithms take over.

If the market was way down on Emotional Monday, we can get a nice long position on Tuesday. If the market was euphoric on Monday, the trend has shown itself and it’s time for the trend followers to get on board.

Either way, Tuesday traders can capitalize on Monday nuttiness.

On the Indexes, buying on Tuesday is the most profitable day and it’s not even close (Wednesday is barely profitable in 2nd place).

If we buy on Tuesday’s Open and sell at the Open the next day, we can be nicely profitable.

We can be profitable just by buying on Tuesday.

In the emails to come this week, I’ll show you the Performance Reports and the entry.

It’s pretty remarkable.

Talk to you soon.

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Disclaimer:
It should not be assumed that the methods, techniques, or indicators presented in these products will be profitable or that they will not result in losses. Past results are not necessarily indicative of future results. Examples presented on these sites are for educational purposes only. These set-ups are not solicitations of any order to buy or sell. The authors, the publisher, and all affiliates assume no responsibility for your trading results. There is a high degree of risk in trading.

HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN INHERENT LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING. ALSO, SINCE THE TRADES HAVE NOT ACTUALLY BEEN EXECUTED, THE RESULTS MAY HAVE UNDER- OR OVER-COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THOSE SHOWN.