The Best Time to Trade on the JSE is revealed. Through in-depth analysis, we have determined the optimal timing for JSE stock trading.
This is a complete guide to the Best Time to Trade on the JSE.
In this in-depth guide you’ll learn:
- Short Overview of the JSE
- Best Time to Trade on the JSE
- How to choose the Right Share Broker in South Africa
- The Best Share Brokers in South Africa
Short Overview of the JSE
The JSE facilitates the listing and subsequent trading of a company’s stock. To facilitate trading, the exchange is sometimes referred to as an “organized” market. The exchange also gives pricing information on all stocks traded there.
As a shareholder, you will always know the exact worth of your holdings since you will know the current price of each share. In a word, a stock market’s goal is to reduce investment risk by enabling the buying and selling of assets.
Best Time to Trade on the JSE
The Johannesburg Stock Exchange (JSE) is open Monday through Friday, from 9 am to 5 pm, South African Standard Time (GMT +02:00). While there are countless opportunities for investors to buy and sell shares, there are certain times that are more optimal.
The stock market is influenced by several factors including breaking news, global events, and more, and these factors could cause irregular trading patterns, which is why traders must remain updated on the news.
1 Hour After the Market Opens (10 am)
Many investors only have time to trade in the stock market for the first couple of hours each day. Most possibilities and upheaval occur in the first hour (and potentially the most risk).
Although that may seem harsh, seasoned traders can often predict when a large amount of “stupid money” will be changing hands.
“Stupid money” refers to the practice of customers making purchases based on the previous evening’s news or television programming.
They are often acting on out-of-date information. Their dealings might quickly shift market sentiment in a certain direction.
Market professionals will exploit an abnormally high or low price to their advantage to shift the market in the other way.
Despite the common recommendation that new traders should avoid the first 15 minutes of the trading day, this is often when the day’s greatest transactions on the early trends may be discovered, giving experienced traders a window of opportunity to capitalize.
The Best Hour to Buy Shares on the JSE
Regular trading starts at 9 am SAST, thus 11 am is often the best hour of the day for trading on the JSE as it provides the greatest gains in a very brief time.
Professional traders often cease trading by 12:30 a.m., when volatility and volume tend to diminish. This is an unfavorable combination for trading, since transactions take longer, and volume is lower.
This time coincides with London Stock Exchange, which operates from 8 am to 4h30 pm with a lunch break in between, in South Africa, this is from 9 am until 5h30 pm as we are an hour ahead of Europe.
1 Hour Before the JSE closes for the day
Many investors also participate in the market during the last hour of the trading day, from 4 to 5 o’clock. All that time since the morning session has given the traders enough opportunity to regroup and refocus.
If the stock market follows its typical intraday patterns, the last hour of trading might be like the first. There are many big shifts and sudden reversals.
In the last hour of trading, like in the first, many inexperienced traders join the market to make purchases or sales based on the day’s performance.
There is a lot of useless money floating about again, albeit not as much as there was this morning, and expert fund managers and day traders could now legally get it.
Other considerations when deciding on the right time to trade JSE – Days and Months
Traders and investors need to think beyond the immediate situation. Since the market usually drops on Mondays, particularly in the middle of the month, Monday afternoon is often a good opportunity to buy.
Many market watchers recommend selling on the Friday before a three-day weekend or the first Friday of the month to avoid the inevitable Monday drop.
Furthermore, costs typically fall in September before rising the following month. Prices tend to climb again in January, particularly for value and small-cap stocks, after a bullish October.
How to choose the Right Share Broker in South Africa
South African traders could not have picked a more favorable time to enter the investment market than the present. Competition among online brokers is high, which means costs are dropping down and features are being boosted.
Those interested in trading global financial instruments could choose from a wide variety of online forex and CFD brokers. However, there are several factors to consider when choosing a broker and we will go through them here.
Commission Charges
Individual stocks, options, mutual funds, exchange-traded funds, and bonds are the main investment types offered by brokers. Some will also provide exposure to the forex market, futures trading, and cryptocurrency exchanges.
Both the suitability of the broker’s offerings to your investment requirements and the fees you must pay is dependent on the investments the broker has available. You should pay close attention to the commissions that are involved with the investments you like.
Overall Reliability
There is a diverse selection of brokers available. Several have been popular for many years, while others have just recently emerged.
That does not imply they cannot be trusted, but if they are managing transactions for clients, they are members of a self-regulatory organization like the Financial Conduct Authority (FCA), the Financial Sector Conduct Authority (FSCA), and other regulators, or subject to additional oversight.
Account Fees
While it could be impossible to eliminate account fees, they may be kept to a minimum. To withdraw funds or investments, or to close your account, most brokers will assess a fee.
If a broker does not charge them, or if you do not use their optional services, you could avoid paying most additional costs.
Pricing and Execution on Trades
Cost is less of a factor today, leading to commission-free transactions becoming the norm at most brokerages.
However, you should consider the brokerage’s position on the controversial practice of paying for order flow and how much it costs before making a final decision.
This is especially true if you are an active trader who wants their deal completed at the best price possible, even if it means a difference of a few cents.
Additional Tools, Educational Materials, and Features
Look for a brokerage that provides free educational tools like live webinars, detailed how-to instructions, video tutorials, glossaries, and more if you are just starting in the investment world.
You should also look at the broker’s commitment to educating its customers about the inherent hazards of more complex trading tactics like options.
The Best Share Brokers in South Africa
In this article, we have listed the best brokers which offer share trading to traders. We have further identified the brokers that offer additional services and solutions to traders.
Best MetaTrader 4 / MT4 Share Broker in South Africa
Overall, Exness is the best MT4 Share broker in South Africa. Exness is a MetaTrader-only broker whose market execution and liquidity are provided by ADS Securities, FXCM Pro, and other respected suppliers.
Exness offers South Africans five retail accounts with EUR/USD spreads starting at zero pip. South Africans should expect a Margin Call of 60% and a Stop-Out of 0%.
Best MetaTrader 5 / MT5 Shares Trading Broker in South Africa
Overall, Alpari is the best MetaTrader 5 / MT5 shares trading broker in South Africa. MetaTrader 5 (MT5) is the most popular trading platform in the world, and Alpari International provides it.
Due to MetaTrader 5’s support, Alpari CopyTrade, trading robots, and automated trading systems may be used with simplicity.
Best Share Broker for beginners in South Africa
Overall, IC Markets is the best Share broker for beginners in South Africa. IC Markets is a prominent and well-known True ECN broker that provides South African beginners with a wealth of educational materials.
The ten “Getting Started” lectures and examination of Web TV, Webinars, and Podcasts might assist South Africans in getting started with online trading on many financial platforms.
Best Low Minimum Deposit Shares Trading Broker in South Africa
Overall, FBS is the best Low Minimum Deposit shares trading broker in South Africa. When South Africans open a Cent Account with FBS, they must pay an incredibly low minimum deposit of 17 ZAR.
FBS offers micro-lot trading, which lets traders test their trading strategies under real-world market conditions, giving them an edge over their competition.
Best ECN Shares Trading Broker in South Africa
Overall, FP Markets is the best ECN shares trading broker in South Africa. FP Markets, one of the most respected electronic communication network (ECN) brokers, processes orders in less than 40 milliseconds.
Traders with FP Markets accounts have access to a range of CFDs on shares using the MT4 and MT5 trading platforms.
Best Islamic / Swap-Free Shares Trading Broker in South Africa
Overall, AvaTrade is the best Islamic shares, trading broker. AvaTrade is the leading CFD and FX broker in South Africa and provides a full solution for Muslim traders.
AvaTrade offers Muslim traders in South Africa halal trading, which assures that their business activities comply with the Sharia.
Best Shares Trading App in South Africa
Overall, NAGA has the best shares trading app in South Africa. The NAGA app facilitates networking with others, trading, and the expansion of trade expertise in South Africa. The NAGA app is loaded with capabilities, allowing South Africans to quickly become trading specialists.
Best ZAR Trading Account Share Broker in South Africa
Overall, HFM is the best ZAR trading account Share broker in South Africa. HFM, a South African broker, provides an array of advanced trading choices. HFM’ dynamic ZAR-denominated accounts allowed for the easy trading of over one thousand goods.
Best Lowest Spread Shares Trading Broker in South Africa
Overall, Pepperstone is the best lowest spread shares trading broker in South Africa. Pepperstone is well-known in the retail and professional trading communities of South Africa for offering an unmatched selection of CFDs and FX.
In addition, Pepperstone is one of the industry’s top STP and ECN brokers and offers some of the lowest spreads and fastest transaction execution times.
Best Nasdaq 100 Shares Trading Broker in South Africa
Overall, eToro is the best Nasdaq 100 shares trading broker in South Africa. Customers in South Africa may expect advanced social trading options from eToro, which offers competitive trading conditions on the Nasdaq 100 index.
South African traders may often anticipate EUR/USD spreads, as well as those of multiple other important products, to start at 1 pip.
Best Volatility 75 / VIX 75 Share Broker in South Africa
Overall, IG is the best Volatility 75 / VIX 75 Share broker in South Africa. IG is the most popular choice for CFDs on the VIX 75 because of its competitive trading environment and several trading platforms.
IG also offers a few useful tools and information, such as an economic calendar, podcasts, trading tips, and analytical tools.
Best NDD Shares Trading Broker in South Africa
Overall, FXTM is the best NDD shares trading broker in South Africa. FXTM offers excellent solutions to traders of all levels of proficiency. FXTM offers the industry’s highest degree of transparency and some of the best STP and ECN execution available.
Best STP Share Broker in South Africa
Overall, RoboForex is the best STP Share broker in South Africa. RoboForex is not only a trusted STP and ECN broker but also one that offers endless social trading opportunities.
RoboForex offers MT4, MT5, and its own proprietary platform through which traders can trade a vast selection of instruments, with spreads from 0.0 pips on major instruments.
Best Sign-Up Bonus Shares Trading Broker in South Africa
Overall, InstaForex is the best shares trading sign-up bonus broker in South Africa. The offshore regulations under which InstaForex operates enable it to provide a variety of incentives.
South Africans who open a trading account and provide identification are eligible for a $1,000 no-deposit bonus and a $30 welcome bonus on their first deposit.
Conclusion
In the world of stock trading, simplicity is key. Most traders of stocks, stock index futures, and index-based exchange-traded funds (ETFs) choose to invest for two to three hours each day as opposed to the full trading day.
Day trading is most profitable during certain times, and it makes sense to focus your trading activities during these times.
Even the most experienced stock traders could lose money if they try to trade outside of these ideal hours, so it is recommended to carry out trading during times when you are most likely to be successful.
Frequently asked questions
Which day of the week is optimal for purchasing stocks on the JSE?
Due to the time since the last trading session on Friday and the pent-up demand, seasoned traders typically consider Monday as the best day of the week to buy and sell stocks.
How much capital is required to begin trading on the JSE?
The minimum purchase quantity varies based on the security or asset type you want to acquire. Some Exchange Traded Funds (ETFs) need a minimum monthly investment of R300 or a one-time investment of R1,000.
Which are the Top JSE Shares to Purchase Right Now?
Gold Fields, British American Tobacco, and Naspers are among the top performing JSE stocks.
Can one earn a profit on the JSE?
Yes, you may earn a profit by purchasing stocks. You may either collect dividends from dividend-paying shares or benefit from share price gain.
How long should stock be held?
Most investors should sell when the price of a company climbs by 20 to 25% from the optimal buying point.
Top 4 Brokers
