On a larger timeframe, buying late in the day > buying in the morning.
Just some data I found interesting after
#bagsai ran a backtest against every name in all my watchlists and my buy timestamps.
We looked at the open market in three categories - buy late/3p to close, neutral/no advantage, buy early (before 10:30a). The split basically came down to 50/35/15.
With 85 percent in favor of either buying late or neutral. That's an easy behavior to adjust.
Of course the other half of the equation is selling. Selling is the exact inverse of buying. So sell early or anything except the final hour.
And I wondered how much not knowing and acting on this had cost me in the time I'd been managing my portfolios.
2% annually.
To put that in perspective: If I had saved that 2% from my buys and sells, and simply compounded the savings for 10 years it would be the size of one of my top 5 largest positions.
Free money.
I can't confirm that buy late/sell early is universal, but it practically is for me and my universe. Most of my names are growth and tech names, but I had a good mix of different sectors. Two names that popped off at me on the buy early/sell late side --
$AAPL and $RIVN
Work smarter, not harder. 🫶🏼
#study $SPY $QQQ