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The Beauty of Trading During Extended Hours

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Written by Timothy Sykes
Updated 8/10/2026 6 min read

Most traders right now are making one VERY BIG mistake.

If you’re like most traders, you clock out at 4:00 p.m. ET…

But that’s leaving a LOT of opportunity on the table (especially if you’re trading with a small account).

Why?

Because almost ALL the biggest moves happen during extended hours…

Why I Love Premarket and After-Hours Trading

Let’s look at ClearOne (NASDAQ: CLRO) from last week, because it’s a perfect example…

CLRO had multiple spikes. Eventually it went from the $3s to the $18s.

You’re not going to time something like this perfectly, but you try to look for when it’s spiking.

Check out the 5-day chart:

CLRO, 5-day, 1-min candle, biggest moves in extended hours
CLRO, 5-day, 1-min candle, biggest moves in extended hours

You can see that CLRO started spiking after hours on August 5. It continued to spike in wave after wave the rest of last week and into yesterday (August 10).

Pay attention to where the biggest spikes happened.

Until yesterday’s big spike and fail at the open, EVERY big spike was either premarket or after-hours.

Why does that happen? Because…

There Are Many More Halts During Regular Hours

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For 100% clarity, there ARE halts during premarket and after-hours. Usually it’s for some news announcement or regulatory issue.

But there are NO volatility halts during extended hours trading.

Which is why I find it more difficult to trade these highly volatile stocks between 9:30 a.m. and 4:00 p.m.

Let’s look at Steakholder Foods Ltd. (NASDAQ: STKH) from yesterday because it’s a good example:

STKH, 8-10-26, premarket spiker, volatility halts in morning trading
STKH, 8-10-26, premarket spiker, volatility halts in morning trading

Look at the left side of the chart. STKH was a fast spiker in premarket trading.

Again, you’re not gonna time something like that perfectly.

You have to be willing to take a small position, know your stop loss, and lock-in singles.

But look at the area circled on the chart. STKH had three 5-minute halts within the first 30 minutes of regular hours.

That is SO much more difficult to trade.

Even worse, it gapped up after the first two halts and then gapped down after the third.

I’m not talking about small moves…

Out of the third halt it dropped like a knife from the $6s to the $4s in two minutes.

So, you’ve got to really be careful.

Let’s look at one more from last week, because the halts can get CRAZY…

Autonomix Medical, Inc. (NASDAQ: AMIX) spiked in premarket trading on August 4.

AMIX, 8/4/26, 1-min candles, volatility halts
AMIX, 8/4/26, 1-min candles, volatility halts

These things get so ugly (SO fast).

If you look closely, I’ve circled 10 volatility halts during regular hours trading.

AMIX did go from the $3s to the $24s, so there was a TON of opportunity. But for me, I’d prefer to sit those halts out. It’s less stressful.

The question is, how do you find the best stocks for extended hours? Especially in after-hours trading…

My New Free After-Hours Watchlist and Guide

This new tool spotted CLRO, okay? Props to anyone who nailed it, including my student Jim Benedict who caught it from the $10s to the $12s.*

My team and I have been working on this for a couple of months. Sign up below (it’s free). Read the guide and you’ll learn everything you need to know to get started with after-hours trading.

Yes Tim, Send Me The Night Tape

You’ll also get instant access to my guide for how to trade the after-hours window called “The Second Session.”

Enjoy!

Millionaire Moves

My student and $3M trader Matt Monaco has also been working on something VERY cool.

I bet nobody in this business has ever asked you this about a trade before…

“How much money are you trying to make?”

To be fair, I always encourage students to focus on the process, and not the money.

At the same time, whenever I post trade alerts I include something like “goal is 5%-10%, cut losses if it doesn’t work.”

In other words, I have a goal in mind.

Well, Matt has taken it WAY deeper.

Matt is going LIVE with StocksToTrade Lead Technical Trainer Tim Bohen on Thursday, August 13 to present a free class on how Matt’s new tool works.

Register Here for the FREE Income Blueprint Class

Key Takeaway

I know many of you reading this are just beginners.

And I don’t blame you if you are scared of this volatility. That’s why I always say to trade small and trade cowardly.

Understand that I’m trading small and cowardly, too.

I want to show you how you can still trade these crazy movers, but you have to be very careful and NEVER get cocky.

Again, get my after-hours watchlist and “Second Session” guide above.

Cheers,

– Tim Sykes

*Results not typical. Past performance is not indicative of future results.


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Timothy Sykes

Tim Sykes is a penny stock trader and teacher who became a self-made millionaire by the age of 22 by trading $12,415 of bar mitzvah money. After becoming disenchanted with the hedge fund world, he established the Tim Sykes Trading Challenge to teach aspiring traders how to follow his trading strategies. He’s been featured in a variety of media outlets including CNN, Larry King, Steve Harvey, Forbes, Men’s Journal, and more. He’s also an active philanthropist and environmental activist, a co-founder of Karmagawa, and has donated millions of dollars to charity.
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* Results are not typical and will vary from person to person. Making money trading stocks takes time, dedication, and hard work. There are inherent risks involved with investing in the stock market, including the loss of your investment. Past performance in the market is not indicative of future results. Any investment is at your own risk. See Terms of Service here

The available research on day trading suggests that most active traders lose money. Fees and overtrading are major contributors to these losses.

A 2000 study called “Trading is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors” evaluated 66,465 U.S. households that held stocks from 1991 to 1996. The households that traded most averaged an 11.4% annual return during a period where the overall market gained 17.9%. These lower returns were attributed to overconfidence.

A 2014 paper (revised 2019) titled “Learning Fast or Slow?” analyzed the complete transaction history of the Taiwan Stock Exchange between 1992 and 2006. It looked at the ongoing performance of day traders in this sample, and found that 97% of day traders can expect to lose money from trading, and more than 90% of all day trading volume can be traced to investors who predictably lose money. Additionally, it tied the behavior of gamblers and drivers who get more speeding tickets to overtrading, and cited studies showing that legalized gambling has an inverse effect on trading volume.

A 2019 research study (revised 2020) called “Day Trading for a Living?” observed 19,646 Brazilian futures contract traders who started day trading from 2013 to 2015, and recorded two years of their trading activity. The study authors found that 97% of traders with more than 300 days actively trading lost money, and only 1.1% earned more than the Brazilian minimum wage ($16 USD per day). They hypothesized that the greater returns shown in previous studies did not differentiate between frequent day traders and those who traded rarely, and that more frequent trading activity decreases the chance of profitability.

These studies show the wide variance of the available data on day trading profitability. One thing that seems clear from the research is that most day traders lose money .

Millionaire Media 66 W Flagler St. Ste. 900 Miami, FL 33130 United States (888) 878-3621 This is for information purposes only as Millionaire Media LLC nor Timothy Sykes is registered as a securities broker-dealer or an investment adviser. No information herein is intended as securities brokerage, investment, tax, accounting or legal advice, as an offer or solicitation of an offer to sell or buy, or as an endorsement, recommendation or sponsorship of any company, security or fund. Millionaire Media LLC and Timothy Sykes cannot and does not assess, verify or guarantee the adequacy, accuracy or completeness of any information, the suitability or profitability of any particular investment, or the potential value of any investment or informational source. The reader bears responsibility for his/her own investment research and decisions, should seek the advice of a qualified securities professional before making any investment, and investigate and fully understand any and all risks before investing. Millionaire Media LLC and Timothy Sykes in no way warrants the solvency, financial condition, or investment advisability of any of the securities mentioned in communications or websites. In addition, Millionaire Media LLC and Timothy Sykes accepts no liability whatsoever for any direct or consequential loss arising from any use of this information. This information is not intended to be used as the sole basis of any investment decision, nor should it be construed as advice designed to meet the investment needs of any particular investor. Past performance is not necessarily indicative of future returns.

Citations for Disclaimer

Barber, Brad M. and Odean, Terrance, Trading is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors. Available at SSRN: “Day Trading for a Living?”

Barber, Brad M. and Lee, Yi-Tsung and Liu, Yu-Jane and Odean, Terrance and Zhang, Ke, Learning Fast or Slow? (May 28, 2019). Forthcoming: Review of Asset Pricing Studies, Available at SSRN: “https://ssrn.com/abstract=2535636”

Chague, Fernando and De-Losso, Rodrigo and Giovannetti, Bruno, Day Trading for a Living? (June 11, 2020). Available at SSRN: “https://ssrn.com/abstract=3423101”