in a global economy wouldn't this just self regulate because of night/day cycle of earth. i.e day in china and night in usa vice versa
They say that stocks go down during the day and up at night
131–140 of 154 posts
Re: They say that stocks go down during the day and up at night
#132Earlier quoted context omitted.
Anyone that uses IBKR as their broker can trade what I mentioned above pre/post market (and some cases overnight). IBKR is a retail broker. I use them, for example. Most brokers in the US let you trade common stock before and after market hours, even ones like webull. That said, not every broker has the same pre/post market trading hours, but the better ones let you trade almost all day and night depending on the und…
Do you consider yourself a trader/active trader? Or just a retail investor who likes to pick stocks other than just buy+hold mutual funds?
I day trade futures a few times a week. Rest goes into my Roth IRA or brokerage account as long term stock holdings.
It's honestly too much work for me to do anything else and the market is too volatile right now
Re: They say that stocks go down during the day and up at night
#133Earlier quoted context omitted.
Any investor can. If the option is not available to you, contact your brokerage to ask about it. Many (most?) brokerages require signing a waiver confirming that you understand the additional risk posed by trading in low-volume pre- and post-market yours.
Is it typically behind extra fees?
Other than the fees that normally come with trading an ETF, no. Commissions vary by brokers though. No fees are related to the time you trade though
Re: They say that stocks go down during the day and up at night
#134There are several explanations for this phenomena: * The largest moves in price occur after quarterly earnings announcements, which are released after-hours. Same with other material announcements. * Prices are more volatile after-hours because there are fewer market participants. Because the order book is smaller, the same sized trade will have a larger effect on price after-hours compared to during trading hours. *…
Haven't you explained too much? Your robust explanation should hold true in 1990, 2000, 2010 but the phenomenon had a discrete beginning in 2009 (and arguably a smaller inflection point in 2002) per the graph.
Re: They say that stocks go down during the day and up at night
#135Earlier quoted context omitted.
Add to all of these that the return is uninvestable, so the market cannot eliminate the arbitrage. 1016x over 30 years is a gain of less than 0.001% per trading day. You would have spent much more than this through fees and market impact to buy and sell the stock each day, especially at any real volume. The market is full of uninvestable or tiny capacity trades like this. A reliable pattern gets created by trading fl…
There are so many amazing profitable trading strategies if one doesn't account for the transactions costs!
Or the counterparty risk (RIP my MtGox/TradeHill arbitrage bot).
Re: They say that stocks go down during the day and up at night
#136Earlier quoted context omitted.
> preallocate all the memory you could need Well, why did they have to restart if they never made any further allocations? This does not add up.
I buy all the groceries I need for a week. That's realistically achievable (cost, cargo capacity of my vehicle, storage capacity at home, etc.). I buy all the groceries I need from now until the end of time. That's not realistically achievable, from any perspective. Allocating all the memory you need for a day is realistically achievable. Allocating all the memory you need until the end of time is not realistically a…
The grocery analogy doesn't work. When you're "done" with a particular "grocery", it's gone. It doesn't exist anymore. When you're done using a block of memory, you can use it again and again and again. Assuming you remembered to free it. Groceries work more like write-once memory.
Still sounds like a leak to me.
Re: They say that stocks go down during the day and up at night
#137It's not just day vs night that is weird but also that almost all of the divergence happened in a very short time span around 2010.
The divergence in AIG occurred to a large extent in 2010. However, this effect is present for most stocks and the indices as well and has existed for pretty much as long as we have reliable data without survivorship and lookahead bias.
Is it surprising to you that the effect was larger for AIG around 2010? As AIG was going bankrupt and the common stock holders were effectively getting wiped out, individuals were willing to hold AIG during the day to play crazy intra-day volatility but unwilling to hold AIG overnight because most announcements around restructuring were happening overnight.
Of course at the time short sales on a list of stocks including AIG were forbidden. So even if you ignore the fact that most day traders etc prefer to play things on the long side, you have the issue that they couldn't play the short side even if they wanted to.
Re: They say that stocks go down during the day and up at night
#138This is interesting, but how can I take this knowledge and practically apply it to the market to make a profit?
Re: They say that stocks go down during the day and up at night
#139Earlier quoted context omitted.
Intraday means you buy some stock - in some exchange - in the morning at the open price in the opening auction and sell the stock in the evening at the close price in the closing auction. Overnight means you take the other side: buy at the close and sell at the open. (This is a bit more complex conceptually as you would never settle the trades and that may be problematic regarding dividends and other corporate action…
All the trades would settle, but you would need extra cash or a margin account. In a cash account, there's rules about selling stocks before the purchase funds have settled. The move to T+2 settlement last decade reduces the requirements, and T+1 later this decade would reduce them further. Dividends and corporate actions aren't a big deal. Those all have announcement dates and record dates. If you hold the shares at…
Thanks for the precision. That makes sense but I wasn't sure.
Re: They say that stocks go down during the day and up at night
#140Earlier quoted context omitted.
Do you consider yourself a trader/active trader? Or just a retail investor who likes to pick stocks other than just buy+hold mutual funds?
I day trade futures a few times a week. Rest goes into my Roth IRA or brokerage account as long term stock holdings. It's honestly too much work for me to do anything else and the market is too volatile right now
> I day trade futures a few times a week.
How profitable are you doing that?