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THE MARKET WHISPERER 34 3

already lost the spread should you wish to exit the trade.
3. High volatility: Again due to low volume, volatility may become

particularly high but generally will not show a clear trend. In other
words, one moment you may be profiting, and the very next you could
be losing, fleeing in fear, and the cycle continues.
4. Price uncertainty: Pre- and post-market prices are not always linked
to the regular trading hours prices. You may often end up paying much

more than during the regular trading day.
5. Limited use of trading orders: Before and after regular trading hours,

it is only possible to use LIMIT orders for immediate buying and selling.

This means that if the stock shows sudden movement, you are likely to

miss the entry or exit point you wanted, especially dangerous when you

do not have any stop order to protect you.
6. Competition with professional traders: Most of the traders at such

hours are professionals or large funds who are better informed than

you.
7. Faulty platforms: Online trading carries the risk of faulty trading

platform reaction times. During pre- and post-market hours, the level
of service you will receive from your broker will generally be very poor.
8. High commissions: Brokers tend to charge higher commissions for
trades executed outside normal trading hours.

Summary

I realize that on the face of things, trading before and after regular market
hours--especially following financial announcements--sounds exciting,
and indeed it is. That’s also why I tried my hand in pre- and post-market
trading. I developed my own special techniques, got enthused over financial

announcements, bought and sold, and in the end… lost! I am well aware

that you might very well succeed, unlike me, but I strongly recommend

avoiding unnecessary problems. So I stand by my initial advice: steer

clear of these hours. You can believe me when I say they’re nothing but

big trouble. Save your time, and you’ll be saving a lot of money over the

years. After my cumulative experiences, I developed my own special rule:
never touch the button during pre- and post-market trading, no matter
how seductive the situation looks.

I recall instances where I held stocks over from the previous day’s
trading, and during pre-market trade saw them being traded for amazing
profits or searing losses. In both cases, the psychological pressure requires

bringing the situation to a close as quickly as possible. The brain demands