Why You Should Never Buy Stocks on Friday

Some of the best trading advice I ever got was from a trader who hated buying stocks on a Friday.

He was a “flipper” who would go in and out of the same stock several times a day.  He didn’t like holding a stock for more than a day or two.  As a result, we nick-named him Dave “long-term-over-the weekend” King.

As a rule, he’d rarely buy a stock on a Friday and hold it over the weekend.  ESPECIALLY a holiday or three-day weekend.

His reasoning was simple.  “Too many bad things can happen over the weekend,” He would tell us.  “And I don’t want to suffer waiting for the opening bell on Monday while some a***ole analyst gives it a sell rating.”

His logic made sense.

Has this happened to you?

You own a stock that looks great on paper.  However, over one weekend someone issues a bad report about it.  Monday morning comes along and the stock tanks.  And you’re left wondering what happened.

I’m not saying that you should sell all your stocks every Friday.

But my friend “the flipper” is not the only trader out there that gets out of his positions before the weekend.

The big boys will purposefully hype certain stocks near the end of a week so they can get out.

Why?

They know something’s about to happen and want to avoid taking losses.

Then on Monday, while you’re selling into the fear, they’re buying back (at a discount) the stock and setting themselves up for the next trade.

It’s called the shampoo bottle tactic.

Wash. Rinse. Repeat.

You don’t have to be a flipper to win.  You just have to earn how to avoid their traps.

Learn how (HERE).