So you want to dive into the world of hard-core trading. One way to do it is to deal with trading. There are two trading times that you need to know and they are trading during regular hours and the other one is called after-hours trading. The business of trading usually involves major and really significant exchanges in the society and the world of finance. The after-hours market used to not be a thing until technology came to the picture. Everything has almost gone digital now, which is why trading is no longer limited during regular office hours.
This wasn’t approved before, but it all changed upon seeing a huge growth potential to all kinds of investors and its great effects in the economy in general. After-Hours Trading used to only benefit huge companies because they were the only allowed to work with it. But a lot has changed over the past decades and now, literally everyone could now practice it.
There are of course a lot of advantages in doing AHT like having a wider bid-ask spreads. This means that as an investor, you can bargain more on the price that you want or can afford from an offer and eventually close a deal according to your budget. This is like the version of going to an auction although instead of bidding high, you bid low until you and the other party meet an agreement that would both work for you.
Lower liquidity rate is also another thing to be thankful when doing AHT. This means that an asset or fund won’t be easily bought or sold. An investor can always do something with the price or the bargaining for his or her own benefit. There is probably one setback doing AHT and that is the fact that affects and investor’s position since the trading is done outside the regular hours of business.
You will notice that the first couple of hours after the normal trading hours have closed are when AHT is at its peak. If you’re serious about really making money here, it is best to strike while the iron is hot and that means putting your game face on during those first two hours. This form of trading is starting to be a fad and it is looking like more investors are embracing this practice. It all happened since the rise of the Internet in the late 90s. It was already introduced in 1999, but it didn’t get much attention back then since there were still a lot of skeptics about it and not a lot of people were computer savvy unlike these days. Even toddlers can now navigate computers!
Given this information now, I would advise that you use it to your advantage and start practicing it as well. If you’re still a bit scared on doing this on your own, get a financial adviser or someone who is more experienced to walk you through the whole process.