However, it’s not quite that simple.
After-hours trading, which happens after the market closes in the afternoon and before the market opens the next day (often called pre-market trading), is a risky business.
First Some Basics
After-hours trading is risky because you may be limited to seeing only quotes from your broker, so you may not know if what is the best price.
Volatile Prices
In many cases, there are few buyers and sellers meaning prices can be volatile. The after-hours market does about one percent of the volume of the daily live markets.Institutional investors dominate the after-hours market and can dramatically change prices by their actions.
The after-hours market is not recommended for investors who are looking for long-term investments. Prices can be very volatile and you’ll want to know exactly what you are paying to take a long-term position.
Stock traders, people interested in short-term price movements, are attracted to the after-hours market. However, traders operate in the dark because they can’t see the whole market.
The after-hours market is best left to professional traders or traders with years of experience.
