If you are getting into trading stocks, then it’s important you don’t gloss over an important factor of this complicated world; The time! The time the stock market opens can sometimes mean the difference between making and losing a good trade.
To learn what times you should be trading, look over this post so you’ll never get an unanticipated trade.
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Stock Market in the United States
The New York Stock Exchange and the NASDAQ both open and close at the same time. Their official trading hours are 9:30 AM eastern time through 4:00 PM eastern time. In addition, the U.S. stock market is closed on a select few holidays:
- New Year’s Day
- Martin Luther King’s Day
- President’s Day
- Good Friday
- Memorial Day
- Independence Day
- Labor Day
- Thanksgiving Day
- Christmas Day
These 2 stock exchanges will also close early at 1 PM on July 3rd, Black Friday, and Christmas Eve.
Stock Market in Around the World
If you are internationally trading, then there opening and closing times are equally as important:
Trading Before and After Closing
Today, there are many brokers that will be willing to trade before and after the Stock Market closes. The pre-market trading hours are 8:00 AM – 9:30 AM and the after hours trading is 4:00 PM to 8:00 PM. Please note that these times will vary between different brokers, so be sure to check before trading.
Trading before and after the normal trading hours means you will be dealing with less volume of trades, making the stock prices more volatile. There are some traders that will make spur of the moment trade after a company announcement that could affect the companies stock price.
When Should I Trade?
Since the market is volatile, it’s hard to say when the exact best time of day it is to trade. Looking at broad averages from the past, there are a few times that are of interest.
- First Five Minutes
- This is when the market adjusts to any news that popped up during after hours. Some experienced traders will take advantage of this period, but for most it’s wise to wait it out. This is the most volatile time for the market.
- The First Hour
- The first hour is like a more stable version of the first five minutes, but is still volatile and can be risky to trade during. However, high risk brings high reward so this may be an ideal period of time tor trade during. Of course the market changes minute to minute so be careful.
- The Afternoon
- The afternoon is when volume trading decreases, meaning that it is the least volatile period. This is the perfect opportunity for beginners to try their luck in stocks.
- End of the Day
- The end of day is much like the beginning, with a ton of activity going on in the stock market. Of course this is not true of every day, as it depends on the news and volatility of the market.
The stock market can be a complicated subject to learn about. It’s important not glance over any important facts about it, and that includes the opening and closing of it.
We hope this post helped you understand what times the stock market opens and closes and what times are ideal for trading.