For many aspiring traders, trading after work would be an ideal time to learn. The problem is, especially for those based in the US, there aren’t many market’s providing good trading opportunities when they get home from work. For Australian traders, they have a similar issue but it’s their morning where opportunities are sparse. Lately, the options have been opening up for traders that want to trade at this time.
The markets wake up in Asia, then Europe and then the US. For those that work daytime in the US, the US markets are dead in their evenings. Overnight, the US markets appear to behave very well. For example, the S&P500 Futures will often hold at the prior days value high/low giving a fairly easy trade. The problem is, it’s a trade that could happen any time over a 12 hour window.
The markets are extremely slow at this time. When you look back at the nights action, it might look that it’s behaving well but when you consider the amount of waiting time, it’s not an easy trade. If you were trading after work, you’d want to be trading a market that was sure to give you an opportunity in the 3-4 hours you could realistically commit. In addition, the market is so slow, you’d probably end up losing focus. Paying attention to a dead market is extremely difficult.
The trading day starts in Asia. But this Asian trading does not generate that much interest in the US markets. There are Aussie prop traders spreading the US and Aussie interest rates but even then volume is low. Crude is traded all over the world but again volume is very light. Index futures are also extremely slow during the Asian morning.
Trading after work – what to trade?
The Osaka Securities Exchange opens at 8pm Eastern Time/5pm Pacific time. An ideal time for trading after work. The Mini Nikkei 225 trades their and in terms of liquidity and volatility it is very close to the eMini S&P500 futures. Volume wise, we’ll see 750,000-1,000,000 contracts a day.
So despite the fact that the US markets are dead, this market is really moving with a lot of volume and a lot of supporting liquidity so you can get out of trades when you need to.
In this video, we take a look at the Mini Nikkei 225 – which is now becoming available at a number of US brokerages.
Trading after work might just be possible after all!
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