Best day of the week to invest money in Index funds using Python

Value investing is the tried and tested method to make money in the stock market. It is long but it works. There are drawdowns but they never enough to wipe off your account and it saves from the stress of day trading.

So how do you do Value Investing?

It’s actually pretty simple.

Why Index Fund and not a Mutual fund?

Now, lets start with the article. So, ideally it is suggested that instead of investing your hard earned money all at once, one time a month, you should split the same money into four equal parts and invest every week. It is a way of minimising risk and staying ‘neutral’ overall.

So now the question arises which day of the week should you pick to invest continuously. In the long run, it doesn’t matter which day you pick cause in the over the years, the difference in today’s and tomorrow’s price will be minuscule.

That’s why you find the most occurring day with the lowest opening price of the week and you buy then. And this is exactly what I did using python. Since I stay in India, I will use NIFTY 50 for an example here but you can use Index Fund of your choice, for that matter even Bitcoin.

How I went about it :-

This gives you the days of the week with how many times they occurred so till now for 2020, its been like

Monday ->15
Friday ->10
Wednesday -> 7
Tuesday -> 7
Thursday -> 7

and for 2019, it’s

Tuesday -> 14
Friday -> 12
Monday -> 11
Wednesday -> 8
Thursday -> 7

I ran this code on a data set from 2007 to 2020 and I found out that most occurring day was, MONDAY.

I ran the code on bitcoin as well found the same answer, Monday is the most occurring day. If you like, you can google this as well “Which is the best day of the week to buy bitcoin?”

And the same for S&P 500, Mondays.

So to conclude, it really does not matter which day you choose but if you wish to invest in historically proven way and a bit risk free, then Mondays are your friend. Just be consistent and patient and soon in a very short amount of time, say 10–20 years you will thank yourself for this. Stay safe and happy investing! :)

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