How can you use the Monday Effect to improve your trades?
If you have a long-term trading mindset, you shouldn't pay much attention to theories like the Monday Effect, for a couple of reasons. First, your goal is five or 10 years down the road, not next weekend. Whether you sell your shares on a Monday or a Friday after holding them for many years doesn’t generally make that much difference.
Secondly, the Monday Effect doesn’t always play out. Trying to time the market, even for the Monday Effect, is impossible. Remember, the Monday Effect was found to show a Monday gain only 49% of the time after a Friday gain, and it didn’t even happen at all through most of the 1990s. That’s hardly worth betting your future on.