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After Hours Trading: Is It Worth The Risk
When you talk about the stock market, you may notice that some people are completely lost at the mere mention of it. This is because trading stocks is often a very lucrative thing you can do to raise your wealth, it is also very confusing and can be very time consuming. There are tricks that many learn about stock market investing, and there are some that always stick with a broker because they donít have the time or the inclination to learn all there is to know about trading stocks and making money. When you add after hours trading to the equation, things get even more complicated.
After hours trading is much like it sounds. You might think of it as putting in your order to buy or sell after the market has closed and before it opens the next day. Your transaction would be completed as soon as the market opens. This used to be something that was only open to corporations or private entities that would be buying or selling large blocks of stock, but after hours trading is now something that almost anyone could do. However, for most, there really is no need for doing this.
You may very well find that your options for after hours trading are very limited. You may only be able to state you want to sell at a certain price - once that stock hits that price at any time - or that you want to sell so many shares. You cannot do all of the things you can normally do during the traditional hours of the stock market. You may find that you can do a lot of overseas trading, but that is because those markets are on their normal working hours. You should take with someone who helps you with your money if you really want to understand what you can and cannot do.
The volume in after hours trading can be a factor in determining the success of your trade. Its important to remember that for the most part, after hours trading is controlled by emotion. Up or down, the lower number of shares traded means that you may not get the price you are hoping for. Instead, you may end up with a huge loss if sentiment goes the other way.
Of couse, if there is bad news after the closing bell, after hours trading provides an opportunity to get out, or, to start shoring the stock.
If you really think that after hours trading is something that you should do, you do have to know what you can do and what you cannot. You should know exactly what you are doing and what to expect when you trade, and you may find that it is a bit more complicated and a bit more risky than you first thought. You should contact your broker about after hours trading to see what their policies are, and if it is something you can do or not. You may find that all you need for your particular portfolio is what you have been doing all along.
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