Investment Tips 29-05-2023 07:45 9 Views

How many trading days in a year: a trading guide by a PRO

How many trading days in a year: a trading guide by a PRO

How many trading days in a year: a trading guide by a PRO

Have you ever thought about how many trading days in a year there are? Is there a specific number of days in a calendar year that are reserved for successful trading in the stock market? If you are seriously thinking about starting your own career, it’s crucial to note that it all depends on the year you are in.

One of the top reasons why it depends on the year in which you are trading is due to the fact that we have nine market holidays that either are on normal business days or weekend days. Before we get to the 2023 trading days calendar and how many stock trading days in a year are, let’s get to know what we mean by a “trading day” exactly.

Let’s dive deeper into it.

What does a trading day represent? 

To resolve all confusion, when we say “One trading day,” we mean the day when the NYSE or the New York Stock Exchange is open. When the NYSE stock market is open, it enables all traders to purchase or sell stocks in addition to other available commodities.

Stock markets, including the NYSE, are operational on weekdays from Monday to Friday, except on specific holidays, which we’ll delve into later. Regular hours on these days start at 9:30 a.m. ET and continue until 4:00 p.m. ET. However, there are occasions when the trading day starts as usual but concludes earlier than the standard time, known as a shortened day.

Two kinds of sessions besides normal trading hours

If you are eager to know how many trading days in a year, you should also understand that in addition to normal trading hours, there are two kinds of sessions:

  • From 7:00 AM to 9:30 AM ET, which are pre-market sessions
  • From 4:00 PM to 8:00 PM ET which represents the after-hours sessions or the “extended  hours.” Not many brokers give this option to their traders, though.

However, when the market is closed, there isn’t an option to trade stocks, i.e. buy or sell them. 

How many trading days are there?

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Generally speaking, there are 252 trading days in a year on the New York Stock Exchange when traders from all over the world are able to trade. Nonetheless, keep in mind that this all varies from one particular year to another. 

Is It Advisable to Trade During Extended Hours?

It’s generally not advisable to place orders before or after regular trading hours, especially if you’re not an experienced day trader. This is primarily because trading volume for assets is typically low during these periods, both on the NYSE and the Nasdaq Stock Market. 

Additionally, significant news can cause immediate market reactions, making it difficult to rely on technical analysis.

When does the stock market close?

The stock market usually closes around the following holidays:

  • January 1st – New Year’s Day
  • The 3rd Monday of January – Martin Luther King, Jr Day
  • The 3rd Monday in February – Presidents’ Day
  • The Friday before Easter Sunday – Good Friday
  • The last Monday of May – Memorial Day
  • July 4th – Independence Day
  • The first Monday in September – Labor Day
  • The fourth Thursday of November – Thanksgiving Day
  • December 25th – Christmas Day

How many trading days are in a year 2023? 

How many trading days are in a year 2023? 

If you were wondering what is the exact number of trading days in 2023, it’s always advisable to consult a 2023 trading days calendar that looks like this: 

  • Marked red are: weekends
  • Marked blue are: holidays and special days on the market.

As seen from the image above, we say that the holiday days in 2023 are:

  • Jan 2 New Year’s Day
  • Jan 16 Martin Luther King Jr. Day
  • Feb 20 Washington’s Birthday
  • Apr 7 Good Friday
  • May 29, Memorial Day
  • Jule 19 Juneteenth
  • July 3 markets are closed at 1:00
  • July 4, Independence Day
  • Sep 24 Labor Day
  • Nov 23, Thanksgiving Day
  • Nov 25 markets are closed at 1:00
  • Dec 25, Christmas Day.

Keep in mind that these stock market holidays are exactly the same for the NYSE and NASDAQ.

Trading days in 2024 – calendar

Trading days in 2024 - calendar

According to the image, the holidays in 2024 when the market will close are:

  • Jan 1 New Year’s Day
  • Jan 15 Martin Luther King, Jr. Day
  • Feb 19 Washington’s Birthday
  • Mar 29 Good Friday 
  • June 19 Juneteenth
  • July 3 markets are closed at 1:00
  • July 4, Independence Day
  • Sep 2 Labor Day
  • Nov 28 Thanksgiving Day
  • Nov 29 markets are closed at 1:00
  • Dec 25 Christmas Day

Trading days in 2025 – calendar

Trading days in 2025 - calendar

According to the image, the holidays in 2025 when the market will close are:

  • Jan 1 New Year’s Day
  • Jan 20 Martin Luther King, Jr. Day
  • Feb 17 Washington’s Birthday
  • Apr 18 Good Friday 
  • May 26, Memorial Day
  • June 19 Juneteenth
  • July 3 markets are closed at 1:00
  • July 4, Independence Day
  • Sep 1 Labor Day
  • Nov 27, Thanksgiving Day
  • Nov 28 markets are closed at 1:00
  • Dec 24 markets are closed at 1:00
  • Dec 25, Christmas Day.

Bottom Line

In summary, during regular trading hours, stock exchanges are open for business, unlike electronic or extended trading hours. This time span is critical as it allows investors to buy or sell securities. The New York Stock Exchange is open from 9:30 AM Eastern Time to 4:00 PM Eastern Time, Monday through Friday, as of 2020.

When engaging in trading, it is crucial for traders to maintain a vigilant awareness of the risks involved when trading outside regular hours. Before deciding to participate in extended hours trading, it is imperative to possess a comprehensive comprehension of the market. Additionally, it is vital to remain consistently attentive to noteworthy news or events that possess the potential to significantly impact the market and be prepared to react and adapt accordingly.

The post How many trading days in a year: a trading guide by a PRO appeared first on FinanceBrokerage.

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