*This blog post is my personal opinion only and may contain affiliate/referral links.
Getting a headstart on your investing and trading strategy during the weekend is a smart way to plan your investing and trading moves on the stock market for the work week. Unless there is a holiday, the stock market is usually open from Monday to Friday. In the US, the business hours are from 9:30 a.m. to 4:00 p.m. Eastern time.
On this blog post, i want to highlight the importance of planning when the stock market is not busy and also when you are not busy. I personally make my investing and trading preparations on Sunday. It is a very ideal time to do my research because i can focus more without thinking so much of my 9-5 work grind.
Benefit of Free and Allocated Time for Research
Let’s be realistic, our full time job can sometime consume us during the work week. Squeezing the research time is often difficult especially if you have to deal with family time, side hustles and other occupation on week days.
If you manage your own portfolio like me, it would usually take at least an hour (often more) to go through the company charts. Reading and analyzing this reports can also be confusing and sometimes hard if you don’t have the time and the focus to digest all this reading literature right in front of you.
No Rush to Make Spur of the Moment Investing and Trading Moves
By having a plan, you are more inclined not to make a sudden and uncalled investing and trading moves. This is because your primary stock market moves are all based from your research and conviction.
For example, if your buy price target is $10 for Stock A, then you would most likely not implused buy it for $15, because according to your research, the stock is undervalued at $10.
The same is true when you want to sell a stock at a certain price. Setting a stop price is a calculated and strategic move, compared to an impulsed sell at a haphazard price.
Budget Setting for Investments and Trades.
Setting your budget during the weekend is not only a smart money management but also a good way to control your emotional buying and selling. One practical rule of investing and trading is to set aside money you can afford to lose. In the heirarchy of financial priorities, basic needs should always take a big chunk of your spending, and if there are some extras left to use it for emergency fund and then for investments.
The weekend is good time to review your budget too. If you have money set aside for investment and trades alone, there’s a high chance that you will also stick to this budget because this is part of your money management strategy.
Thank you for reading.