Daylight Saving Time Fully Explained: From US Stock Market Hours to Investment Strategy
4 min read · · Korean original
Contents 2
Hey everyone, how's it going? Today I'd like to talk about "daylight saving time," a system the US uses every summer. Simply put, daylight saving time is the idea that "since days are longer in summer, let's move the clocks forward by an hour and live by that."
So why do it at all? Daylight saving time was first introduced in Germany in 1916, during World War I. Because of the war, resources were scarce, so it reportedly began with the goal of "let's save some energy" by moving the clocks forward in summer.
The US saw this and thought, "Not bad," and adopted daylight saving time in 1918 to save energy and boost the economy. Of course, it's a somewhat controversial system today, but it's still in effect every year.
Got It Now? Daylight Saving Time Explained
Daylight saving time moves the clocks forward by one hour to account for longer days in summer. For example, 8 a.m. is simply treated as 9 a.m. The logic is that this lets people make more use of daylight, so they use less electricity, and since they'll spend relatively more time outdoors, economic activity picks up too.
You might be thinking, "Is that really true?" But according to research, people actually become more active during daylight saving time, which reportedly boosts sales in the leisure and hobby industries.
But where there are pros, there are cons! Sure, it was introduced to save energy and encourage spending, but now that nearly 100 years have passed, some people push back, asking, "How much energy does daylight saving time really save, and how much more do people actually spend?"
To sum up, daylight saving time is meant to save energy and stimulate the economy, but today it may also have negative effects on health and circadian rhythms, so whether to abolish it is being debated.
US Stock Investors Must Keep an Eye on Daylight Saving Time
Alright, now for the main point. If you're interested in US stocks, you really should note when daylight saving time starts and ends. That's because when it applies, the US stock market's opening and closing times shift one hour earlier or later in Korean time.
When daylight saving time applies, the US stock market's opening and closing times shift one hour earlier or later in Korean time. If you don't realize daylight saving time has ended and show up at 10:30 on November 1 to day-trade, the market won't be open, and you may end up sitting there staring blankly for another hour.
| Category | Without daylight saving time (November–March) | With daylight saving time (March–November) |
|---|---|---|
| Opening time | 11:30 p.m. | 10:30 p.m. |
| Closing time | 6:00 a.m. | 5:00 a.m. |
Let's sum it up. Once daylight saving time starts, US stock trading begins at 10:30 p.m. Korean time. On the first trading day in March, you'll need to get ready quickly, going, "What's this? It's an hour earlier?" Conversely, when daylight saving time ends on the first trading day in November, trading goes back to starting at 11:30 p.m. You might think, "Now I have a bit more breathing room," but on the flip side, it's later at night, so you'll probably be more tired.
Also, the release times of economic indicators shift by about an hour in Korean time, so it's a good idea to double-check any investment strategy tied to release schedules. So on the first trading days of March and November, when daylight saving time starts and ends, setting alarms in advance is one way to avoid confusion.
Lastly, daylight saving time isn't just a US thing; many places in Europe use it too. If you mainly trade on volatility, it should help to know the exact opening times of those markets as well when planning your strategy.
That wraps up this post on daylight saving time. I think I really came to understand daylight saving time properly while writing this, too. If this post helped even a little, please hit the heart below and share it widely. Thank you!
