I see some crazy wide gaps in after-hours trading, only to see it have nil effect the following trading day. How closely should I be paying attention to after-hours trading?
Posted by T e x on :
on pennies?
none...is like a "dead-man's brake"
Posted by Jo4321 on :
After hours can be very misleading. I assume you are not talking about when you see a spread like a bid for $10.00 and an ask for $2000.00, (which is Tex's dead man brake) but are talking about when a stock is actually moving after hours.
I've found that you cannot trust after-hours prices. The only time I have traded after hours is if a stock jumps up a huge amount after hours, and I know I would be satisfied with that gain. Most times, when I have done this, the stock price has gone down as soon as it opens. I think only once has it gapped up and stayed there for me, but since I was satisified with my gain, it didn't matter.
As far as selling after hours when a stock is going down, nearly everytime I've thought of doing that, the stock at least recovered a little on the open.
Jo
Posted by Schopenhauers Dog on :
Okay, that explains a lot. Especially the "dead-man's brake" analogy. Makes sense to me. Thanks!!
Posted by Verdict on :
So you could buy and sell stocks even after the market has closed?
Posted by Jo4321 on :
Yes, til 8:00pm after. From 8:00am to 9:15am before.
Maybe it depends on your broker though. I used Fidelity.
Jo
Posted by 10of13 on :
It will depend on the stock that you are wanting...and yes..it does depend on your broker...very few will let you buy "pennies" before or after hours... And the stocks they will let you buy? There is usually an added fee...
quote:Originally posted by Verdict: So you could buy and sell stocks even after the market has closed?
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Makes sense to me. Thanks!!