I’ve been investing for a few months and often check after-hours and premarket prices just to see what’s happening.
I’ve tried buying and selling during these times, but I don’t really get the appeal. Orders barely move, and I’ve noticed odd things like sudden price drops or spikes. I know low volume makes it unreliable, but what’s the actual purpose of these windows?
Would love to hear your thoughts!
Here’s a link that explains it: Investopedia - After Hours Trading.
Basically, people trade after hours for various reasons. They might prefer less competition, need to react to breaking news, or just have a schedule that doesn’t fit normal trading hours.
Okay, I get that. But why not just make trading hours longer or even 24/7? Wouldn’t it eliminate all the weird spikes and low volume issues?
Funny you ask—there’s been progress in that direction. The SEC recently approved a 24-hour exchange, so it might happen sooner than you think.
Apparently, the Texas Stock Exchange is planning to go 24 hours.
Yeah, just like their power grid.
24 hours… but not all in a row!
The issue is market concentration. If trading is spread out too much, liquidity dries up. That means wider spreads, bad fills, or even no fills at all.
Exactly. People underestimate how much they rely on liquidity. When it’s gone, it’s a nightmare trying to execute trades efficiently.
The limited hours are a legacy of when trading was done in physical locations. We’ve moved past that, but markets are slow to change. It’s only a matter of time before 24/7 trading becomes standard.
After-hours trading is crucial for international firms and funds. For example, if a London or Asian market sends an order, U.S. after-hours trading lets firms hedge or adjust their positions instead of waiting for the market to open.
A lot of people working in finance need regular hours so they can have lives. Markets closing gives traders and analysts time to breathe, plan, and reset.
Honestly? After a couple of drinks, people like me end up making some… questionable trades during after-hours.
The classic “Oops, I must’ve bought Amazon when I was drunk” moment.
It’s a chance to jump on news before the general public reacts at market open. I’ve snagged quick 2-3% gains by buying overreactions and selling when regular hours stabilize.
As for the purpose, it’s just the market adapting to meet demand for more flexible trading.
Exactly. It’s like how we’ve gone from shouting on trading floors to using supercomputers for instant trades. Markets evolve to meet demand.
As a non-American, I love it. Makes it easier to trade without dealing with U.S. time zones.
Today in premarket, NVDA hit $126.xx but climbed past $135 during regular hours. Imagine buying at $126 and selling a few hours later for a nice profit!
That was me! Bought at $126.77 and sold at $131.77.
How do you actually get orders to fill during premarket? Mine never go through.