Best Day & Time to Trade Stocks on Bursa Malaysia

Question: Among All Trading Days, Which Day Is Best to Trade?

It might sound like a riddle, but this is actually a valid question. Retail investors would surely want to know whether there is a correlation between the day of the week and the number of gaining counters outpacing losing counters on that particular day.

It is not just ordinary investors who are curious — stock market gurus would be interested too, especially those who do Live Trading. If possible, they would certainly want to pick the day that statistically shows the highest probability of making a profit.

For this session, we start with a Question, because we do not yet have a specific day that we know for certain has a ''high chance'' of making money. If we already knew, we would formulate a Hypothesis to be tested rather than a Question.

What We Need:

This section covers our data source. It depends on how we want to manipulate our data.

Timeframe: to speed up the analysis, we will only take the last 5 years of data, rather than taking all stock data from IPO until now.
Identifying the day of the week (Monday through Friday) based on the date.
We define the ''Best Day'' as the day where gaining counters outnumber losing counters, even if only by a few. To simplify the analysis, we ignore counters that remain unchanged. A gain means the counter closed at a higher price than the previous day''s close.
Counter selection: do we want to include all main counters only, or warrants as well? To simplify the analysis, we will only take main board counters.

Other Assumptions:

Other external factors that are not manipulated in this experiment are assumed to be the same (having equal effect on every day) throughout the timeframe we selected.
By narrowing the scope of the data (as we did above), we also assume that the narrowed scope represents the overall data.

Steps Involved:

Extract all relevant data. In this study, we extract data for every stock starting from the IPO date or the date the company was first listed on Bursa Malaysia. We only take main board counters.

2. Review the extracted data to ensure it is free from errors. In this phase, what we want to see is whether the data is correct or not. How many rows and columns does our data have? Does the extracted data truly cover all the stocks available?

3. Next, we need to determine the day of the week based on the dates we have. If you were to check each date one by one against a calendar and then write it back manually... that would be exhausting. Thankfully, we have programming and computers to make our work easier.

4. Our next task is to identify whether a counter gained, lost, or remained unchanged on that day. For this, we need to find the difference between yesterday''s closing price and today''s closing price.

5. We label each row as gain/loss/unchanged based on the difference between today''s and yesterday''s closing price.

6. After obtaining all labels (gain/loss/unchanged) for all counters, we then tally them by label and also by day of the week (Monday/Tuesday/Wednesday/Thursday/Friday).

7. The final phase is data visualisation. For this session, we only rearrange and slightly modify the structure of our data. In future sessions, to aid understanding, we will present the data in the form of charts and graphs.

Conclusion

In conclusion, the best day to trade is Friday, followed by Wednesday, Thursday and Tuesday. The worst day is Monday.

If you are excited or keen to see the full procedure of this data study from start to finish — including the programme we used, the coding, and so on — you can register as a FREE member of the Mahersaham website.

After registering as a member, you are invited to watch the FULL VIDEO of approximately 40 minutes in the section below (accessible to Mahersaham members only).

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FAQ - Best Day to Trade Stocks on Bursa Malaysia

1. What is the best day of the week to trade stocks on Bursa Malaysia?

Based on our statistical analysis of Bursa Malaysia data over a 5-year period, Friday is the best day to trade stocks. It is followed by Wednesday, Thursday, and Tuesday. Monday tends to be the worst performing day.

2. How was the best trading day determined?

We analysed historical stock data by comparing each day''s closing price against the previous day''s close. A day is considered ''good'' when the number of gaining counters exceeds the number of losing counters. We only analysed main board counters, excluding warrants.

3. Should I avoid trading on Mondays?

While our data shows Monday has the weakest performance statistically, it does not mean you should completely avoid trading on Mondays. The data shows a general trend, but individual stock performance can vary. Use this information as one factor in your overall trading strategy.

4. Does this analysis apply to all stocks on Bursa Malaysia?

This analysis covers main board counters on Bursa Malaysia and excludes warrants. External factors such as global market sentiment, economic news, and company-specific events can influence daily performance beyond what the day-of-the-week pattern suggests.

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