Is It Better to Sell Stock on Friday or Monday? Timing Your Market Exits

Are you sitting there on Friday afternoon wondering if you should hit that sell button or wait until Monday morning? You’re not alone This timing question has puzzled traders for decades, and while there’s no magic formula, some interesting patterns might help guide your decision

I’ve spent countless hours analyzing market data and testing various trading approaches. Let me share what I’ve found about this age-old Friday vs. Monday dilemma that could potentially boost your returns (even if just by a little).

The Friday Advantage: What Data Shows

Many traders believe Friday is generally better for selling stocks. According to market analysis from IG International “Friday may be the best time of week to sell shares.” This could potentially get you a slightly better price than waiting until Monday.

Why might Friday offer better selling opportunities? Several factors come into play:

• Weekend optimism – Traders often display more positive sentiment heading into weekends
• Unseen weekend news – Saturday and Sunday’s news hasn’t yet affected the market
• Lower trading volumes – Friday afternoons typically see reduced participation, which can sometimes lead to slightly higher prices
• Risk management – Many traders close positions before weekends to avoid holding through potential weekend news events

However, I’ve learned through experience that blindly following this rule without considering the broader market context is risky. Each week has its own unique characteristics.

Monday’s Market Mood

Mondays have developed a reputation for being somewhat pessimistic in the trading world. Research analyzed by Investopedia shows Monday has historically produced lower returns compared to other days of the week.

Several theories attempt to explain this pattern:

• The “Monday effect” suggests stock prices follow the trajectory they were on when markets closed Friday
• Investors might experience gloomier moods returning to work
• Companies sometimes release bad news over weekends when markets are closed

In actual data from 2000 to 2024, Investopedia found Monday showed among the lowest average returns at about 0.009%, significantly trailing Tuesday’s average return of 0.062%. That’s quite a difference!

What Recent Market Data Actually Shows

Before you make any decisions based on these patterns, let’s look at what more recent data tells us:

Investopedia’s analysis of S&P 500 data from 2000-2024 revealed:

Interestingly, while Tuesday shows the strongest performance, Friday and Monday share equally low average returns. The percentage of positive trading days remains remarkably consistent across all weekdays, ranging between 52-54%.

Beyond Simple Day-of-Week Effects

Smart traders know that market timing involves more than just picking the right day. Let’s explore some other timing considerations that might influence your decision:

Time of Day Matters More Than Day of Week

The first hour (9:30-10:30 AM ET) and last hour (3:00-4:00 PM ET) of trading typically see the highest volatility and volume. During these periods, opportunities can be greater but so are risks.

For selling positions:

• Morning: All overnight news gets priced in quickly
• Midday: Usually calmer with less volatility
• Close: Often sees increased activity as positions get squared away

Pre-Holiday Effects Are Stronger Than Day-of-Week Effects

Investopedia’s research found more significant patterns around holidays:

• Before long weekends: Average daily return of +0.185%
• After long weekends: Average daily return of -0.059%
• Regular trading days: Average daily return of +0.033%

The day before a holiday weekend has historically been five times better than a normal trading day! This effect appears more reliable than simple day-of-week patterns.

Monthly Patterns May Override Weekly Patterns

Certain months have historically performed better or worse than others:

• September has lived up to its reputation as the weakest month with negative returns
• November has been the strongest month with an average daily return of 0.107%
• The first five trading days of any month tend to show stronger performance than the rest

Is It Actually Worth Timing Your Sells?

Here’s where things get real. While these patterns are statistically interesting, they’re often too small to exploit profitably once trading costs are considered.

Let’s do some math:

• Trading spreads for S&P 500 stocks typically cost about 0.025-0.045%
• Round-trip costs (buying and selling) double these amounts to 0.05-0.09%
• Day-of-week effects show differences of only hundredths of a percent
• Add in potential tax implications for frequent trading

When we weigh these costs against the small statistical differences between days, the advantage largely disappears for most retail investors.

What’s Actually More Important Than Day of the Week

Instead of focusing exclusively on which day to sell, consider these more impactful factors:

1. Company-Specific Events

• Earnings announcements – Selling before or after can dramatically impact returns
• Product launches – Major company events often move stock prices more than calendar effects
• Management changes – Leadership transitions can cause significant price moves

2. Market Conditions

• Volatility levels – High VIX readings suggest caution regardless of day
• Sector trends – Industry momentum can overwhelm day-of-week patterns
• Economic releases – Major data announcements impact markets more than calendar effects

3. Your Investment Goals

• Tax considerations – Long vs. short-term capital gains
• Portfolio rebalancing – Selling to maintain target allocations
• Liquidity needs – When you need the cash matters more than slight price differences

My Practical Recommendations

After years of observing these patterns and trading accordingly, here’s what I recommend:

1. Don’t make day of the week your primary decision factor
   The differences are simply too small for most retail investors to capitalize on after costs.

2. If you’re already planning to sell

   • If it’s Friday afternoon and you’re already decided, you might as well execute rather than wait
   • The risk of weekend news could outweigh any potential Monday morning advantage

3. Consider pre-holiday periods more seriously
   The stronger statistical support for pre-holiday strength makes this a more viable timing consideration.

4. Focus on your investment thesis
   Ask yourself: “Has anything changed about why I bought this stock?” This matters more than the day of week.

5. For long-term investors
   Consider dollar-cost averaging for buys and systematic portfolio rebalancing for sells, rather than trying to time the market.

Real-World Example: The Illusion of Perfect Timing

Let me share a personal experience. In 2022, I had planned to sell some technology stocks on a Friday afternoon. The stocks had been struggling, and I worried about potential weekend news. I sold on Friday at what seemed like reasonable prices.

The following Monday, those same stocks rallied nearly 3%. I felt like I’d made a terrible timing mistake. However, by Wednesday, they had fallen 5% below my Friday selling price due to a surprising interest rate announcement.

The lesson? Even when you think you’ve timed things perfectly or terribly, subsequent market movements often render those judgments meaningless. This is why focusing on your investment thesis rather than specific days is usually more productive.

Final Thoughts

While Friday has traditionally been considered potentially better for selling stocks than Monday, the actual differences in recent data are minimal. Other factors – like the time of day, proximity to holidays, and the specific month – have shown stronger effects.

For most investors, the trading costs and practical limitations make day-of-week trading strategies difficult to profit from. Instead, focus on your investment goals, company fundamentals, and broader market conditions when deciding when to sell.

Remember: no statistical pattern is guaranteed to continue. Markets evolve, and as patterns become well-known, they often weaken or disappear entirely.

What’s your experience with Friday vs. Monday trades? Have you noticed any patterns in your own portfolio performance based on the day of the week? I’d love to hear about your experiences in the comments below!