How do I Trade on the Weekend when the Stock Market is closed?
Are you an employee working for 5 to 9 jobs? Want to invest in stocks but cannot? Well, don’t worry, you can trade on weekends too. So after a hectic weekday, you can rest at the weekend, investing your money in the stock market.
How?
Well, in this article, I will explain to you how to trade on weekends? So, keep reading till the end.
Stock Market
Stock Market is a market where buyers and sellers exchange stocks.
A stock or share is a financial statement representing the holder’s ownership of a company’s assets.
A company issues a stock to increase its funds, and a buyer buys stocks to share the company’s profit.
Stock exchange hours
New York Stock Exchange- 9:30-16:00
Tokyo Stock Exchange- 9:00-11:30 and 12:30-15:00
London Stock Exchange- 8:00-16:30
Hong Kong Stock Exchange- 9:30-16:00
Shanghai Stock Exchange- 9:15-11:30 and 13:00-15:00
National Stock Exchange of India- 9:00-15:30
Australian Securities Exchange- 10:00-16:00
Frankfurt Stock Exchange- 8:00-20:00
Russian Trading System- 9:30-19:00
Dubai International Financial Exchange (NASDAQ Dubai)- 10:00-14:00
Toronto Stock Exchange- 9:30-16:00
Singapore Stock Exchange- 9:00-12:00 and 13:00 -17:00
Weekdays and Weekends
Usually, the Stock market operates five days a week and closes during the weekend.
Can I trade on weekends?
You can trade stocks on weekends too. Trading is made possible through Electronic Communication networks (ECNs).
ECNs enable all those busy people to trade stocks even on weekends.
ECNs
An ECN stands for electronic communication network. It is a computer-based method of trading, and it takes outside the market. It is a modern way that allows investors to trade financial products digitally without any contact with the market.
Who should trade on Weekends?
People who are busy working during the market hours. ECNs provide more time to trade for many investors, then the after-hours trading and weekend trading allow investors to participate in trading even more.
Advantages
# Flexibility
Trading after hours provides flexibility to the trader. It provides flexible timing to take part in trading.
Many traders cannot trade during trading hours to do their office hours.
Aftermarket trading helps them do research on the market and then do trading easily with a proper strategy.
# Extra trading hours
If you are an employee who works from 9-5 pm, you can try this weekend trading. Moreover, you can trade on weekends to take other benefits of trading on weekends.
# Concentration
If your weekdays are usually busy and you cannot do any research, you can benefit from weekend trading by having deep research and constructing a proper strategy to trade.
# Strategy
While some strategy is beneficial for weekdays, there are also some which help you to earn profits on weekends.
Disadvantages
# Delay in Execution
This one is the most and most important and biggest disadvantage of weekend trading.
Execution risk is a risk in which an order is not processed within a day, and on the next day, these orders get canceled.
Moreover, some of your orders cannot be executed if you place a limit order because fewer people willing to buy or sell stocks at that price.
# High fluctuations
Prices of different stocks are highly volatile, which means it goes up and downs frequently; therefore, only those who should do weekend trading are well informed or big players.
# Extra cost
Some CDCs may charge extra money for trading after hours or Weekend trading.
# Limited Trading options
There is a limit of stocks in weekend trading; for example, some stocks are not available.
Weekend Trading in India
You cannot trade on Weekends in India. Though you can place pre-orders using some brokers.
Markets to Trade on Weekends
● Cryptocurrencies like Bitcoin are opened for 24-hours to trade.
● Global Indices like FTSE 100, Germany 30, Wall Street and HS50.
● Forex including GBP/USD, EUR/JPY.
Conclusion
Weekends trading has its positives and negatives. Remember, trading is associated with risk. Therefore, before entering the stock market, prepare yourself. You can read books, watch videos or take courses to learn more about the stock market.
