THE TRADING HOURS - When to post your stock orders?

A stock market is like a clean hand of a cute little child - it opens and it closes. HAHA
Poor analogy, I know, but you get the point.

The main difference though is that while a baby’s clean little hands can open and close anytime the baby wants, a stock market on the other hand has scheduled opening and closing time. During this trading time, you will be able to see the actual movement and fluctuation of stock prices of all the companies listed in the stock exchange to aid you in entering your real-time buy or sell orders. 

You can do your trades daily, Mondays to Fridays, except during legal or special holidays or when the Bangko Sentral ng Pilipinas (BSP) clearing Office is closed, and such other days as may otherwise be declared by the SEC or PSE to be a non-trading day. In accordance with the Revised Trading Rules, the PSE shall determine the hours and schedule of a trading day. Unless PSE decided otherwise, a trading day shall conform to below new schedule. This information can be crucial for your time-sensitive trading strategies. (If you’re doing EIP though, no need to really dwell on this).

PSE NEW TRADING HOURS (as of Jan 2 2012)

This is the first gift of Philippine Stock Exchange (PSE) this 2012.
Says who? Me.
Driven  by the demands and trends of the times, that is--to extend the trading hours--the PSE has pushed through with the second phase of trading extension up to 3:30 p.m., beginning January 2 2012. Before this, its first phase had initially extended the trading time until 1pm from the previous 9:00am-12:10 pm starting Oct 3 2011. Now that’s more time for all investors to monitor their investments. For many (including me), that means no more waking-up early in the morning just to feel the real market heat. HAHA.  
With that, I shout out THANK YOU PSE!

8:45 am
9:00 am
Orders accepted and queued are considered in the determination of the Opening Price (based on the pre-opening algorithm).These orders will not trade until the market opens.
9:30 am
Opening Price for all securities is calculated. The order book is frozen for a short moment until calculations of the opening price is completed. Order entry, modification and cancellation are not allowed
9:30am – 12:00 nn
Orders are automatically matched at the Best Price in accordance with the Revised PSE Trading Rules and Implementing Guidelines. Odd-lots can only be traded and modified during this period.
12:00 nn - 1:30 pm
Clients are not allowed to enter/modify/cancel Orders during this period.
1:30 pm  
03:17 pm – 03:20 pm
Orders accepted and queued are considered in the determination of the Closing Price. These orders will not be traded until the market transitions to Run-Off/Trading-at-Last
03:20 pm – 03:30 pm
Orders are accepted and executed only at the Closing Price. 
03:30 pm

End of a trading day.
 As with any other stock transaction-related information, better to check your broker on their specific policies regarding order entry timing and restrictions. Citiseconline for example doesn’t allow modifications and/or cancellations of orders  from 9:15am-9:30am (Market Pre-Open No-Cancel Period – order entry still allowed), while BPI Trade doesn’t allow order cancellation during the entire Market Pre-Open from 9:00: AM to 9:30: AM.

What if the market is closed?

Of course you can also put off-hour orders (or orders after the trading hours) to be posted in the exchange the next trading day. This feature is especially useful, for example, to employees who have no time to watch the market during the trading period coinciding with their work hours, or to our dear OFWs on the  other side of the planet who would otherwise need to wake-up at the crack of dawn or late in the evening to place their orders. One disadvantage though with placing off-hour orders is that you’re only able to base your order price on the day’s closing prices, which is not necessarily going to be the opening price the next trading day. You miss the opportunity of monitoring the exact market hullabaloo to better adjust your investment decisions. In effect, you’re putting your orders predicting the market direction the next day, when you can actually have it right tuning to the market real-time.

Check also the specific conditions and restrictions of your broker regarding posting orders after trading hours.   
There you have it! Make sure to leverage on this trading schedule! Enjoy your longer sleeping time! 

Have fun investing!

PS: Forget this trading hours in your strategy. Find out how to invest effortlessly with the guidance of TrulyRichClub! Learn how to invest profitably with very minimal effort!

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