The Monday Effect: A Stock Market Mystery

The Monday Effect is a market phenomenon where stock prices take a hit on Mondays, more than on any other day of the week

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From Wall Street to Dalal Street, the Monday dip isn’t just local—it’s been seen in markets around the globe

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Experts believe it’s due to investor anxiety, bad weekend news, and pessimism building up before the markets open on Monday

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Studies have shown that average returns are lower (even negative) on Mondays, especially in the first trading hour

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In recent years, the Monday Effect has weakened, thanks to globalization, 24/7 news, and after-hours trading

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Long-term investors usually ignore it. But short-term traders sometimes avoid making trades early Monday to sidestep the dip

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While not a guaranteed rule, the Monday Effect is a fascinating market quirk worth knowing, especially if you trade actively!

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