| |
An important worry about investing in the first hour is that there is a good potential that the stock will dramatically change in value after the first hour. An example is what happened to the Coca-Cola Company stock. On February 22, 2018, the value of Coca-Cola stock was listed at $43.40 during the start of the trading day. The stock fell to $43.30 within the first hour. This might be because some people who invested in the stock decided to sell after doing some research. At 10am, the stock started to experience a sizable increase. It moved up to $43.70 in about 30 minutes. The stock would keep going up and down during the day and would occasionally get back to the original opening price.
What this means is that the second hour of trading is a time when people might respond to a significant change in the stock by buying or selling it. Even with that, the stock might still trend close to its original value depending on how intense the trades were during the first hour.
