In this article, you’ll learn how trading outside Regular Trading Hours (RTH) works, the differences between premarket, after-hours, and the regular trading session, why companies report earnings outside market hours, and the unique risks and opportunities of extended-hours trading. We’ll also examine real-world data from my post-earnings trading journal to show why some of the market’s biggest moves occur outside RTH.
Whether you trade or invest, you’ve likely noticed that some of the biggest moves in the stock market happen when the market isn’t even open.
Quarterly earnings reports, economic data releases, analyst upgrades, and breaking news are often announced before the opening bell or after the closing bell, causing stocks to surge or plunge long before the regular trading session begins.
Although trading activity outside Regular Trading Hours (RTH) has grown significantly in recent years, most liquidity is still concentrated during the normal trading day.
In fact, according to the New York Stock Exchange, extended-hours trading accounted for more than 11% of total U.S. equity trading volume as of early 2025, meaning that only 1 out of every 10 shares gets traded outside RTH.
On the other hand, that also means that nearly 9 out of every 10 shares are still traded during regular market hours.
For traders, this creates an interesting tradeoff.
Extended-hours sessions can offer opportunities to react to major news before the broader market, but they also come with lower liquidity, wider bid-ask spreads, larger price swings, and order limitations that can make risk management considerably more difficult.
In this article, we’ll explain how trading outside regular market hours works, compare it with the regular trading session, examine the advantages and disadvantages of extended-hours trading, and discuss why understanding these differences is essential before risking real money.
Quick Answer: Can You Trade Outside Regular Trading Hours?
Yes. Most major brokers allow investors to trade stocks outside Regular Trading Hours (RTH) during premarket and after-hours sessions. However, extended-hours trading typically involves lower liquidity, wider bid-ask spreads, and greater price volatility than the regular trading session. While some of the market’s biggest opportunities occur outside RTH—particularly following earnings announcements and major news events—it’s important to understand the additional risks before trading.
Key Statistics About Extended Hours Trading
- More than 11% of all U.S. equity trading volume now occurs outside Regular Trading Hours (RTH), while nearly 89% still takes place during the regular trading session.
- Premarket trading typically runs from 4:00 AM–9:30 AM ET, while after-hours trading generally runs from 4:00 PM–8:00 PM ET.
- Many publicly traded companies release earnings before the market opens or after it closes, making extended-hours trading one of the busiest periods for price discovery.
- Researchers at the University of California San Diego found that more than 90% of after-hours earnings announcements resulted in immediate stock price adjustments.
- A 2025 study published in the Journal of Risk and Financial Management found that price impact and volatility increase while trading volume declines during extended-hours sessions.
- According to my post-earnings trading journal, the average first-hour earnings move across 52 earnings setups was 14.50%.
- The largest one-hour earnings move in my journal was HPE (+45.97%), while the largest next-day Max Favorable Excursion (MFE) reached +39.13% (APPS).
- The average next-day Max Favorable Excursion (MFE) was 11.94%, compared with an average Max Adverse Excursion (MAE) of -5.66%.
- During earnings season, bid-ask spreads can widen from just a few cents during RTH to $0.20–$0.50 or more after hours, increasing the risk of slippage and poor trade execution.
- Many online brokers do not activate standard stop-loss orders during extended-hours trading, making overnight gaps a significant risk for active traders.
Regular Trading Hours Vs. Outside Regular Trading Hours (RTH)
The U.S. stock market’s Regular Trading Hours (RTH) run from 9:30 AM to 4:00 PM ET, when the vast majority of buying and selling activity takes place.
This is when liquidity is generally at its highest, bid-ask spreads are typically the tightest, and most investors and institutions are actively participating in the market.
Outside of RTH, investors can still trade during the premarket session (typically 4:00 AM–9:30 AM ET) and the after-hours session (typically 4:00 PM–8:00 PM ET).
Some online brokers also offer overnight trading for a limited selection of securities, allowing investors to react to news almost around the clock.
While extended-hours trading provides greater flexibility, it operates very differently from the regular trading session. Lower trading volume often results in wider bid-ask spreads, increased price volatility, and a greater chance of slippage or partial order fills.
These factors can make trading outside RTH both more rewarding and significantly riskier.
Some of the Market’s Biggest Moves Happen Outside RTH
One of the biggest advantages of extended-hours trading is the ability to react to earnings reports and other market-moving news before the regular trading session begins.
Because most publicly traded companies release quarterly results either before the opening bell or after the closing bell, significant price moves often occur long before the market opens the following day.
As part of my own trading journal, I’ve tracked hundreds of earnings-related momentum setups.
The table below highlights 25 of the largest post-earnings moves I’ve documented. All of these moves occurred in 2026, after the company’s reported earnings, either during pre-market or after-hours trading.
Note that Max Favorable Excursion (MFE) is the largest move a trade achieved from the close of the hourly earnings candle, while Max Adverse Excursion (MAE) is the largest adverse move the trade experienced during the trading session.
| Date | Stock | 1-Hour Earnings Move | Max Favorable Excursion | Max Adverse Excursion | Next-Day Close |
|---|---|---|---|---|---|
| Jun 1 | HPE | +45.97% | +2.35% | -16.25% | -11.87% |
| May 27 | SNOW | +35.21% | +6.93% | 0.00% | +5.22% |
| Jun 1 | VSXY | +34.59% | +9.38% | -1.76% | +8.23% |
| May 13 | DOCS | -27.84% | +10.50% | -1.00% | -5.74% |
| Jun 1 | ODD | -27.58% | +6.84% | -14.28% | -3.56% |
| May 28 | PLAB | -24.86% | +14.95% | -9.15% | -14.95% |
| May 28 | DELL | +23.22% | +15.94% | -0.50% | +9.10% |
| May 28 | MDB | +22.07% | +3.66% | -23.28% | -16.68% |
| May 12 | QUBT | +21.30% | +16.68% | -11.40% | -4.78% |
| May 27 | PHR | +20.61% | +4.52% | -14.48% | -12.73% |
| May 14 | FIG | +19.79% | +4.32% | -7.23% | -0.30% |
| Jun 10 | NAVN | +18.49% | +5.00% | -11.25% | -8.44% |
| May 26 | ZS | -18.00% | +16.63% | 0.00% | -16.63% |
| Jun 4 | GWRE | -17.41% | +3.22% | -14.46% | +6.26% |
| May 28 | S | -16.96% | +20.94% | -14.88% | +9.96% |
| Jun 4 | TTAN | +16.25% | +4.89% | -10.15% | -8.01% |
| May 20 | INTU | -15.45% | +10.23% | -0.40% | -9.00% |
| May 19 | RRGB | +15.19% | +9.74% | -8.70% | +1.50% |
| May 28 | PD | +15.19% | +16.77% | -4.13% | +16.40% |
| May 13 | CSCO | +14.26% | +5.49% | -2.24% | -1.00% |
| Jun 15 | LZB | +13.84% | +12.57% | 0.00% | +1.00% |
| Jun 1 | CRDO | -13.50% | +5.57% | -19.84% | +11.74% |
| May 19 | EGHT | +13.16% | +4.16% | -22.12% | -17.50% |
| May 13 | STUB | +13.10% | +7.50% | -2.68% | -0.50% |
| May 14 | ONDS | +13.00% | +16.90% | -4.27% | +11.83% |
While not every one of these trades were successful (due to my own decisions and risk management, NOT the setup itself), these examples demonstrate just how much price can move after companies release important news outside Regular Trading Hours.
These examples also illustrate an important point: extended-hours trading offers some of the market’s greatest opportunities, but those opportunities are almost always accompanied by increased volatility and risk.
Large overnight gaps, wider bid-ask spreads, and reduced liquidity can create exceptional reward potential—but they also demand disciplined risk management.
Why Companies Report Earnings Outside Regular Trading Hours
Most publicly traded companies release quarterly earnings before the market opens or after it closes rather than during Regular Trading Hours (RTH).
This practice has become the industry standard because it allows investors, analysts, and institutional traders time to review the financial results before the next regular trading session begins.
It also gives company management an opportunity to hold earnings conference calls and answer analyst questions without interrupting live trading.
Reporting outside RTH also helps reduce disorderly trading during the announcement itself.
A 2025 study published in the Journal of Risk and Financial Management found that trading volume declines significantly during extended-hours sessions while price impact and volatility increase, meaning relatively small trades can move prices much more than they would during the regular trading day.
The researchers concluded that earnings announcements made outside RTH often establish the opening price for the next trading session despite the lower liquidity available.
Academic research also shows just how quickly markets react to earnings news.
Researchers at the University of California San Diego analyzed millions of high-frequency trades and found that after-hours earnings announcements triggered immediate stock price jumps in more than 90% of cases, demonstrating that the market rapidly incorporates new information even while the primary exchange is closed.
For momentum traders, this is particularly important because some of the market’s largest one-day moves begin before the opening bell.
In my own earnings trading journal, many of the biggest opportunities—including HPE (+45.97%), SNOW (+35.21%), VSXY (+34.59%), DOCS (-27.84%), and ODD (-27.58%)—all originated from earnings announcements released outside Regular Trading Hours.
While these events can create exceptional trading opportunities, they also expose traders to overnight gaps, lower liquidity, and wider bid-ask spreads, making disciplined risk management essential.
The Biggest Risk of Extended-Hours Trading: Stop Losses May Not Protect You
One of the biggest risks of trading outside Regular Trading Hours (RTH) is that standard stop-loss orders may not protect your position.
Many online brokers do not trigger stop-market or stop-limit orders during premarket and after-hours sessions, meaning a stock can gap well beyond your intended exit price before the regular market even opens.
Even when stop orders are available, lower liquidity and wider bid-ask spreads can result in significant slippage.
For example, a highly liquid stock might have a $0.01–$0.03 bid-ask spread during RTH, but that same stock could temporarily widen to $0.20–$0.50 or more after hours following an earnings release.
If you sell 100 shares and receive a fill $0.40 worse than expected, that’s an immediate $40 execution loss—before considering the stock’s actual price movement.
The same issue becomes even more pronounced in lower-volume stocks, where larger spreads and thinner order books can lead to partial fills or fills several dollars away from the last traded price.
This is one of the primary reasons why many experienced traders either reduce their position sizes or avoid executing trades entirely during extended-hours sessions.
For momentum traders, extended-hours trading can provide access to some of the largest moves of the quarter, but understanding how your broker handles stop orders—and recognizing that execution quality is often worse—is just as important as finding the right setup.
Why I Personally Watch Extended Hours – My Post-Earnings Momentum Strategy
Unlike many traders, I actually spend more time watching the market outside Regular Trading Hours (RTH) than I do during the trading day.
That’s because my strategy focuses on post-earnings momentum, and the overwhelming majority of companies release quarterly earnings either before the market opens or after it closes.
Those announcements often create the largest price moves of the quarter, making extended-hours trading an ideal time to identify potential opportunities.
That said, I rarely buy or short a stock immediately after an earnings release.
Instead, I use the extended-hours session to analyze the company’s financial results, evaluate whether the fundamentals and technicals align, and identify stocks showing exceptional momentum.
Once the first one-hour candle has closed after earnings have been reported, that’s why I either take a trade or toss the setup into the NOPE pile.
By waiting for the first hourly candle, I’m allowing the market time to digest the earnings report, reducing the impact of the emotional volatility that often occurs immediately after a news release.
From there, I look for stocks breaking out on the hourly, 4-hour, and daily charts, and then use predefined profit targets and stop-loss levels to manage risk.
While this approach certainly doesn’t win every trade, it has produced some of the biggest opportunities documented in my trading journal.
More importantly, it provides a rules-based framework that allows me to evaluate post-earnings momentum objectively rather than chasing headlines or reacting emotionally to overnight price movements.
| Metric | Value From My Trading Journal |
|---|---|
| Earnings setups studied | 52 |
| Average 1-Hour Earnings Move | 14.50% |
| Average Next-Day MFE | 11.94% |
| Average Next-Day MAE | -5.66% |
| Largest 1-Hour Earnings Move | HPE: +45.97% |
| Largest MFE | APPS: +39.13% |
| Largest MAE | MDB: -23.28% |
Should You Trade Outside Regular Trading Hours?
Yes—but only if you understand the additional risks.
Premarket and after-hours trading allow investors to react to earnings reports and breaking news before the regular session begins, creating opportunities that aren’t available during normal market hours.
However, extended-hours trading is not the same as trading during RTH.
Lower liquidity, wider bid-ask spreads, greater volatility, and stop-loss limitations can all increase execution risk and lead to larger-than-expected losses.
Personally, I watch extended-hours trading every earnings season because my post-earnings momentum strategy begins when companies release their financial results—not when the market opens.
But trading outside RTH is NOT for everyone.
If you’re new to trading, start small, learn how your broker handles extended-hours orders, and remember that capital preservation is always more important than chasing overnight gains.
In the end, the biggest opportunities often appear when the market is closed—but the traders who survive are the ones who understand the risks before the opening bell.
If you want to go deeper:
- Explore the Trading Statistics Hub to understand how different sectors behave across market cycles
- Study real setups inside the Trade Reviews section
- Learn the framework behind high-probability setups in the Post-Earnings Momentum Strategy
This is how you turn raw market data into repeatable trading edge.
More Trading Statistics…
Frequently Asked Questions – Trading Outside RTH
Can you buy stocks outside regular trading hours?
Yes. Most major online brokers allow investors to buy and sell stocks during premarket (typically 4:00 AM–9:30 AM ET) and after-hours trading (typically 4:00 PM–8:00 PM ET). Some brokers also offer overnight trading for a limited number of securities.
Is it safe to trade outside Regular Trading Hours (RTH)?
Trading outside RTH can be profitable, but it generally carries more risk than trading during the regular session due to lower liquidity, wider bid-ask spreads, higher volatility, and the possibility of poorer trade execution.
Why do companies report earnings outside market hours?
Most companies release earnings before the market opens or after it closes to give investors and analysts time to review the results before the next trading session. This also allows management to conduct earnings conference calls without interrupting normal market trading.
Can stop-loss orders trigger during after-hours trading?
Not always. Many brokers do not activate standard stop-market or stop-limit orders during extended-hours trading. Even when they do, wider bid-ask spreads and lower liquidity can result in significant slippage.
Why are bid-ask spreads wider outside RTH?
Because there are typically fewer buyers and sellers participating outside regular market hours. Lower liquidity means market makers and other participants often quote wider spreads to compensate for the increased risk.
What is the biggest risk of trading after hours?
The biggest risks are overnight price gaps, poor liquidity, wider bid-ask spreads, slippage, and stop-loss limitations. These factors can cause trades to be executed at prices that are much worse than expected.
Why do some of the biggest stock moves happen outside RTH?
Many of the market’s most important catalysts—including earnings reports, guidance updates, analyst actions, mergers, acquisitions, and economic data releases—occur before the opening bell or after the closing bell, often resulting in significant overnight price movements.
Do professional traders trade outside Regular Trading Hours?
Yes. Many institutional investors, hedge funds, and active traders participate in extended-hours trading to react quickly to new information. However, they also recognize the additional execution risks and often adjust their position sizing and risk management accordingly.
Should beginners trade outside regular trading hours?
Most beginners are better served learning during the regular trading session, where liquidity is higher and bid-ask spreads are typically tighter. Once you understand how your broker handles extended-hours orders and have a proven risk management plan, you can decide whether trading outside RTH fits your strategy.
References
Financial Industry Regulatory Authority. (n.d.). Earnings season: What investors should know. https://www.finra.org/investors/insights/earnings-season
Journal of Risk and Financial Management. (2025). Extended-hours trading, liquidity, and price discovery. Journal of Risk and Financial Management, 18(2), 75. https://www.mdpi.com/1911-8074/18/2/75
New York Stock Exchange. (2025). The early bird gets the worm: A new normal in off-hours U.S. equities trading. https://www.nyse.com/research/insights/the-early-bird-gets-the-worm-a-new-normal-in-off-hours-us-equities-trading
University of California San Diego. (2023, July 24). Earnings news causes immediate stock price jumps, sometimes moving the whole market. https://today.ucsd.edu/story/earnings-news-cause-immediate-stock-price-jumps-sometimes-moving-whole-market
U.S. Securities and Exchange Commission. (n.d.). After-hours trading: Understanding the risks. https://www.investor.gov/introduction-investing/general-resources/news-alerts/alerts-bulletins/investor-bulletins-17
The Paper Trading Journal. (2026). Author’s post-earnings momentum trading journal and proprietary earnings dataset (January–June 2026). Internal trading records.
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