Can I Trade Outside Market Hours? (Evening and Weekend Trading)

You can trade during the evenings and weekends, as long as the markets you choose are open during those hours. However, when the markets are out of session, they tend to move more slowly, with significantly lower volume and reduced volatility compared to peak trading hours. We call this time dilation.

This means that opportunities to execute trades may feel scarce and take longer to develop, which can be frustrating if you're expecting the same level of activity as during daytime sessions. However, this doesn’t mean trading in the evening is unproductive; it simply requires a different approach.

What Is "Trading Time Dilation"?

In the markets, time feels like it moves differently depending on the level of market activity. If you’re trading during high-volume, action-packed hours, the market moves quickly. But if you’re trading in slower, low-volume times, like evenings, it feels like time is dragging on forever.

If you trade after work, you’ve probably had this experience: you sit down, chart ready, and… the market just moves really slowly. Opportunities are rare, and you start questioning if you’re doing something wrong.

The issue isn’t that there are no opportunities in the evenings; it’s that they feel fewer and far between because of slower market activity. The market isn’t as lively or volatile, so time stretches. Your 4-hour evening trading session can feel like a whole week of nothingness, while a 4-hour session during peak activity feels like there’s a lot going on.

The Psychology of Trading Time Dilation

But this isn’t just about the market, it can also impact your psychology. When the market feels slow, the temptation to force trades is stronger. You may start to see setups that aren’t really there and take trades you wouldn’t normally take..

To deal with this, we need to manage our expectations when trading markets which are out of session. You can’t compare evening trading to daytime trading. It’s like comparing apples to oranges, or more accurately, comparing 4 hours of high-activity trading to 4 hours of near silence.

What Can You Do About It?

Let’s get practical. If you’re trading in the evenings, here’s how you can work with time dilation:

• Manage Expectations: Accept that evening trading isn’t going to offer as many opportunities as daytime trading. Slow markets aren’t absent of opportunities, they’re just stretched out. Be prepared to wait longer for quality setups.

• Adjust Your Strategy: Instead of focusing on short-term trades or intraday setups, consider extending your time horizons. Look at higher timeframes, like the hourly or daily charts, where trades might take days or even weeks to play out. This way, you’re not glued to the screen for hours, waiting for something to happen.

• Stay Disciplined: The biggest mistake traders make during low-activity sessions is forcing trades. Remember, not taking a trade is better than a bad trade. Stay patient and stick to your plan.

Now you understand the concept of trading time dilation and adjust your expectations, you’ll be able to handle trading outside of regular market hours. Sure, evening trading might feel slower, but that doesn’t mean it’s less meaningful.