Have you ever asked yourself why we can’t trade in the New York Stock Exchange (NYSE) and the Nasdaq before 9:30 a.m. and after 4:00 p.m. Eastern Time? That’s because, in the US, the market closes during this interval. You need to know how to trade after hours and how to trade pre-market!

However, you may be a busy lady who just can’t find the time to trade in this small period of fewer than 7 hours. You are probably here to know how to trade stocks after hours or how to trade pre-market.

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Let’s see.

Differences between trading post-market x pre-market

Post-market trading happens typically between 4 p.m. and 8 p.m. Pre-market trading usually ends at 9:30 a.m., when the market opens. Pre or post-market trading is a modern way to trade – nowadays, we don’t actually need to go to the stock market to trade physically, this is done electronically. After-hours trading can happen through brokers that allow this type of trading or through electronic communication networks (ECNs).

Benefits of after-hours and pre-market trading

As I said in the introduction, you may not have the time to trade when the market is open. There are several other benefits to trade after hours and pre-market, such as a much quicker response to breaking news. Let’s say you bought stocks of your favourite clothing company. However, you were watching TV at 9 p.m., and you saw the current owner of the company was arrested for having a large number of illegal drugs.

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This type of news tends to lower the company’s stock price and maybe increase their competitor’s. You may want to buy stocks from the competition after hours so that in the morning you have a very likely profitable stock at hand.

Negative points of trading after hours and pre-market

Trade wisely. After-hours trading is less liquid, so it will be harder to convert stocks into money. The price fluctuations are also far more volatile in after-hours trading than when trading in regular hours.

How to trade after-hours + How to trade pre-market

Most significant brokers allow for individual traders to do after-hours or post-market trading (from 4 p.m. and 8 p.m.) – an example is Robinhood, Plus500 or eToro.

I strongly recommend that when you practice how to trade after hours or pre-market, you choose crypto trading. The cryptocurrency market, unlike trading stocks and commodities, is not tradeable on a regulated exchange. It’s open 24 hours a day, 7 days of the week for you to trade.

However, do not practice this or any other type of trading without understanding the basics of trading and practising this activity with a demo account.

Another instrument that is tradable outside market hours are the CFDs, but you must be aware of the liquidity of the CFDs you’re trading, or else you may lose money. The CFDs are risky instruments, so it’s only advisable to trade it with enough experience and knowledge (even within the regular market hours).

ConclusionConclusion

This is how to trade stocks after hours and pre-market, ladies. You’ll only need to check whether your broker allows for trading during this period, analyse the consequences, and go for it!

Check some broker reviews here, and find the perfect one that allows you to trade pre-market or after hours.

If you’re not willing to take the risk of trading pre and post-market, try and choose a broker that provides a high-quality and well-made app for your phone. This way, you can trade within the open market hours during lunch or when waiting in line.

Hope you found this article useful, and ask if any doubts come up.

See you in the comment section below!

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