Why Caution Is Key When Holding Stocks Overnight
Holding stocks overnight can be risky, and it’s something every trader should approach with caution. Whether you’re going long or short, the decision to keep a position open after the market closes carries its own unique set of risks and rewards. The stock market is constantly moving, even when the markets themselves are closed. That means news events, earnings reports, or global economic shifts can dramatically affect the value of a stock by the time trading resumes the next day. This is why it’s essential to weigh these risks carefully before deciding to hold any stock overnight.
