Is it bad to trade after hours?

A growing number of self-directed brokerage platforms, like TD Ameritrade, are now allowing 24/5 trading. This gives investors the opportunity to take advantage of headlines and breaking news, as well as international markets and sectors.

This used to be only available for institutional investors, but technology has changed the game. But it is different from trading during the sessions, with your limit orders transferred to an electronic communication network (ECN).

If you are someone who is constantly keeping an eye on the news, this would be a good move since you have fresh developments in your back pocket.

However, there are three main risks: pricing, low liquidity, and volatility.