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REDDIT

Does 24/7 trading actually benefit retail investors?

A lot of retail investors view 24/7 trading as a victory because they think it promises more access, flexibility, and opportunity. I’m not convinced that any of those things necessarily create an advantage. More importantly the expanded window may actually create a bigger disadvantage.

For example we all know that there are many algos in the market. They do not need to sleep, get distracted, panic after an unexpected move, or make emotional decisions at 2am. Humans do, and that becomes a meaningful disadvantage when the market never closes. No investor can remain alert and perform at their best every hour of every day, while automated systems can operate without interruption.

This could become especially problematic overnight, when thinner liquidity can exaggerate price movements. A sharp move in SPY, QQQ or an individual stock could trigger stop losses, create panic and completely reverse before most investors even wake up.

So my question is do you think 24/7 trading genuinely help you, or would it just create more pressure and widen the gap between retail investors and institutions?