The evening stock market: what you need to know – READ THIS before you start!

The evening fair, what does it entail?

When trading in shares, you will have to take into account the opening and closing times of the stock exchange . It is often thought that it is not possible to trade outside these opening hours. However, this is not entirely true. The evening exchange makes it possible to trade in shares after the market has closed. How does this work? You can read it in this blog.

Exchanges and exchange times

Stock exchanges are the central places where securities are traded, because this is where supply and demand come together. Different countries and regions have their own stock exchange. The Dutch stock exchange can be found in Amsterdam at the well-known Beursplein 5. The most famous stock exchange in the world can be found in New York. This is the New York Stock Exchange. In order to organize the trading of shares, stock exchanges are bound to opening hours. In this way, liquidity is concentrated within a fixed number of hours, instead of shares being traded randomly 24 hours a day. This ultimately leads to better and healthier tradability of shares.

From the avondbeurs

Although stock exchanges are bound to specific opening hours, it is often possible to trade shares outside these times. This is due to the fact that many companies are listed on multiple stock market indices, such as Shell. Shell is listed as an A-share on the Euronext Amsterdam, but also on the New York Stock Exchange as a B-share. Read more about Shell’s A and B-shares here . If the Dutch stock exchange is closed, certain shares can still be traded via foreign stock exchanges. This is known as indirect unofficial trading.

Evening trading is especially popular in the United States. This is because there are relatively many American shares that are also listed on foreign stock exchanges. After all, the United States has many international companies.

Evening fair: for which companies?

It was already discussed above that a share of a company can be traded via the evening exchange, when the share is listed on multiple exchanges. In addition to various American companies, many Dutch companies can also be traded via the evening exchange. In addition to Shell, you can think of other larger names such as Unilever, Air France KLM, ASML and ING. Such shares are also traded via the American exchange. When the doors of the Dutch exchange close, the doors of the American exchange are just open. You can then continue trading in Dutch shares until 22:00 Dutch time.

Advantages of Evening Market Trading

Practical . When you trade on the evening stock exchange, you will be able to benefit from a longer ‘investment day’. This can have added value for the full-time working Dutch person, for example, because he works during the opening hours of the Dutch stock exchange. This is often impractical. The evening stock exchange offers a solution.
React quickly . There is nothing more frustrating than hearing relevant news but not being able to act on it because the stock market is closed. When you trade on the evening market, you get more opportunity to react directly to the latest news.

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Strategies for Day Trading Day trading is the buying and selling of a financial instrument within the same trading day or even multiple times during the day. Profiting from small price fluctuations can be very lucrative if done correctly. However, it can be a dangerous game for beginners or investors who do not adhere to a well-thought-out strategy. Furthermore, not all brokers are suitable for the high volume of daily transactions by traders. Nevertheless, some brokers are specifically designed for day traders. Knowledge is power In addition to some knowledge of basic trading procedures, day traders should be aware of the latest news and events that affect the markets — What will interest rates do? What does the economic outlook look like? Etc. Therefore, do your homework. Make a list of stocks you would like to trade and educate yourself about these companies and the markets in general. Keep yourself updated on business news and visit reliable financial websites. Set aside money Determine how much capital you are willing to risk per trade. Many successful day traders risk less than 1% to 2% of their account per trade. If you have a trading account of $40,000 and you are willing to risk 0.5% of your capital per trade, your maximum loss per trade is $200 (0.005 x 40,000). Use excess capital to trade that you can afford to lose in the event of a loss. Remember, it can happen. In addition to money, also set aside time Day trading requires your time. That’s why it’s called day trading. You’ll even lose a large part of your day. So don’t consider day trading if you have limited time. The process requires the trader to monitor the markets and spot opportunities that can arise at any time during the trading day. Acting quickly is essential. Start small As a beginner, focus on no more than 1 or 2 companies’ stocks during a session. Following and spotting opportunities and possibilities is easier with just a few stocks . It has become increasingly common to trade in “fractional shares”, which are, as the name suggests, smaller parts of a single share. This allows you to specify that you want to use a specific, smaller amount to invest. This means that, for example, Apple shares are trading at $250 and you only want to buy $50 worth of Apple shares, many brokers now allow you to buy one-fifth of a share. Avoid Penny Stocks You’re probably looking for deals and low prices. However, stay away from penny stocks . These are often illiquid stocks with very little chance of making a big profit. Stocks that are listed for less than $5 per share are delisted from major exchanges and are only available over-the-counter. Unless you see a real opportunity and have done your research, stay away from these securities. Time your transactions Many orders placed by investors and traders are executed immediately when the markets open in the morning, which contributes to price volatility. An experienced player can recognize these patterns and profit from them. For novice day traders, it may be wiser to observe the markets without trading for the first 15 to 20 minutes. Volatility usually levels off halfway through the trading day, and then starts to increase again as the end of the day approaches. Although peak hours on the markets offer many opportunities, it is safer for beginners to avoid them. Limit losses with limit orders Choose what type of orders you place for your trades. Will you use market orders or limit orders? When you place a market order, it will be executed at the best available price at that time — so there is no price guarantee. A limit order, on the other hand, guarantees the price, but not the execution. Limit orders help you trade with more precision, where you determine a price (not unrealistic but feasible) at which the securities will be bought or sold. An advanced and experienced day trader can also use the addition of options to his/her strategy to hedge his/her own positions. Be realistic about the profits A strategy does not always have to make a profit to be profitable. Most traders only make a profit on 50% to 60% percent of their trades. However, they make more on their profits than they lose on their losses. Make sure that the risk on each trade is limited to a specific percentage of your account and that your entry and exit strategy is clear and written down. Keep calm There are plenty of times when the markets will test your nerve. As a day trader, you will have to learn to control greed, hope and fear. Decisions should be made based on logic, not emotion. Stick to the plan Successful day traders need to act fast, but not think fast. Why? They have developed a trading strategy in advance, along with the discipline to stick to it. Instead of chasing profits, it is important to stick to your formula. 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The evening stock market: what you need to know – READ THIS before you start!

The evening fair, what does it entail?

Exchanges and exchange times

From the avondbeurs

Evening fair: for which companies?

Advantages of Evening Market Trading

Compare brokers and start investing

Join thousands of others?

The value we offer:

See also

Day Trading Strategies for Beginners – TIPS & TRICKS

Popular Active Investment Strategies – THIS IS WHAT YOU NEED TO KNOW!

Recovery of this stock price on the London Stock Exchange is too difficult

Forex Investment Strategies – TIPS & TRICKS

Expensive VS Cheap Stocks – THIS IS WHAT YOU NEED TO KNOW!

Differences between stocks and bonds – THIS IS WHAT YOU NEED TO KNOW!

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