They say that stocks go down during the day and up at night
statmodeling.stat.columbia.edu
They say that stocks go down during the day and up at night
1–10 of 154 posts
Re: They say that stocks go down during the day and up at night
#2Since the article is not very informative, and it's a real rabbit hole to try to track this stuff down across all the linked articles etc. and as I don't even really care about stocks and the market, I am only left with one question which I did not find answered anywhere yet - what exactly does day and night mean in the context of the whole world trading?
Re: They say that stocks go down during the day and up at night
#3Since the article is not very informative, and it's a real rabbit hole to try to track this stuff down across all the linked articles etc. and as I don't even really care about stocks and the market, I am only left with one question which I did not find answered anywhere yet - what exactly does day and night mean in the context of the whole world trading?
[deleted]
Re: They say that stocks go down during the day and up at night
#4Since the article is not very informative, and it's a real rabbit hole to try to track this stuff down across all the linked articles etc. and as I don't even really care about stocks and the market, I am only left with one question which I did not find answered anywhere yet - what exactly does day and night mean in the context of the whole world trading?
From what I gathered:
Intraday returns: the difference in price from market open to market close
Overnight returns: the difference in price from market close to the next day’s market open.
They are only talking about stocks and they are traded on markets with opening hours < 24h.
Re: They say that stocks go down during the day and up at night
#5Since the article is not very informative, and it's a real rabbit hole to try to track this stuff down across all the linked articles etc. and as I don't even really care about stocks and the market, I am only left with one question which I did not find answered anywhere yet - what exactly does day and night mean in the context of the whole world trading?
Presumably open and closed hours for the stock exchange on which that stock trades.
Re: They say that stocks go down during the day and up at night
#6Since the article is not very informative, and it's a real rabbit hole to try to track this stuff down across all the linked articles etc. and as I don't even really care about stocks and the market, I am only left with one question which I did not find answered anywhere yet - what exactly does day and night mean in the context of the whole world trading?
Day = daily interval during which the exchange is open for trading.
Night = daily interval during which the exchange is closed for trading.
Re: They say that stocks go down during the day and up at night
#7Since the article is not very informative, and it's a real rabbit hole to try to track this stuff down across all the linked articles etc. and as I don't even really care about stocks and the market, I am only left with one question which I did not find answered anywhere yet - what exactly does day and night mean in the context of the whole world trading?
Simply put, day means if you bought on the market open and sold at the close. Night means if you bought on the close and sold on the open.
The implication seems to be stocks jump at the open then trail off during the day. Thing is most of this is only obvious in retrospect and by the time you realize it the opportunity is gone because it’s now widely known.
Re: They say that stocks go down during the day and up at night
#8Since the article is not very informative, and it's a real rabbit hole to try to track this stuff down across all the linked articles etc. and as I don't even really care about stocks and the market, I am only left with one question which I did not find answered anywhere yet - what exactly does day and night mean in the context of the whole world trading?
Each stock is listed at some exchange. There are companies that have stock listed at several exchanges, but the stock tickers have a postfix that identifies the exchange they are listed on so you can still distinguish them. And for such companies, one of those exchanges is the 'primary exchange' of the stock. Normally the vast majority of trades of a stock happen on its primary exchange.
So, since each stock has a primary exchange, the 'day' and 'night' refer to the time zone of that particular exchange.
Re: They say that stocks go down during the day and up at night
#9Since the article is not very informative, and it's a real rabbit hole to try to track this stuff down across all the linked articles etc. and as I don't even really care about stocks and the market, I am only left with one question which I did not find answered anywhere yet - what exactly does day and night mean in the context of the whole world trading?
Intraday means you buy some stock - in some exchange - in the morning at the open price in the opening auction and sell the stock in the evening at the close price in the closing auction.
Overnight means you take the other side: buy at the close and sell at the open. (This is a bit more complex conceptually as you would never settle the trades and that may be problematic regarding dividends and other corporate actions.)
Re: They say that stocks go down during the day and up at night
#10Since the article is not very informative, and it's a real rabbit hole to try to track this stuff down across all the linked articles etc. and as I don't even really care about stocks and the market, I am only left with one question which I did not find answered anywhere yet - what exactly does day and night mean in the context of the whole world trading?
Simply put, day means if you bought on the market open and sold at the close. Night means if you bought on the close and sold on the open. The implication seems to be stocks jump at the open then trail off during the day. Thing is most of this is only obvious in retrospect and by the time you realize it the opportunity is gone because it’s now widely known.
As someone who doesn't know much about stocks and trading - is it normal to keep stocks for only evening or evening -> morning, what about morning -> morning, or even longer timespans?
Or is this the difference between trading and investing?