馃攳
Should You Trade Stocks Before Market Opens (Premarket Movers)? - YouTube
Channel: StocksToTrade
[0]
- Today we're gonna talk about
the big pre-market movers.
[3]
They can be profitable
[4]
but they can also be very, very dangerous.
[8]
So there's a lot of
things you should know.
[9]
(upbeat music)
[17]
Be sure to click subscribe to be notified
[18]
as soon as one of our
new videos are released.
[21]
Today we're gonna talk
about pre-market movers.
[24]
Have you traded pre-market?
[26]
Have you done well?
[27]
Let me know, yes or no
in the comments below.
[30]
So a lot of new traders
[33]
kind of get enamored with pre-market.
[36]
Let me kind of layout some
terms before we get started.
[40]
4:00 a.m. Eastern is when NASDAQ
[44]
and NYSE stocks start trading.
[47]
Now normally there isn't
much liquidity that early
[50]
but stocks can trade at 4:00 a.m.
[53]
And pre-market is from
that period, 4:00 a.m.
[57]
until the market open at 9:30 a.m.
[61]
So you've got a lot of time there.
[63]
What is that?
[64]
Five and half hours.
[65]
And many traders will see stocks up big
[69]
and think wow, maybe I could
make a couple hundred bucks
[71]
before I go to work.
[73]
Pre-market trading can
be done successfully
[76]
but I wanna talk about
a lot of the dangers
[78]
and why I would recommend kind
of cautiously wading into it.
[83]
The biggest thing you will see
[86]
and this is why you wanna use
your StocksToTrade screeners
[90]
is focus on liquid stocks.
[93]
Often four, five, six, seven, 8:00 AM,
[97]
stocks might be up 20, 30, 40%
[99]
but they might be only
moving on, I mean literally
[103]
a couple 100 shares.
[105]
And that is something you
should avoid, avoid, avoid.
[109]
You need liquid stocks
[111]
because not only do you need
to be able to buy the stock,
[114]
you need to be able to exit.
[116]
If you're a buyer, you need a seller
[118]
and when you're selling, you need a buyer.
[120]
And if a stock is only trading a few 100,
[124]
maybe a few 1000 shares,
maybe 10,000 shares,
[128]
there isn't enough liquidity
to get in and out of that stock
[131]
in a timely fashion.
[133]
And what can happen, I call
it trading against yourself.
[137]
Because if you're in one
of these illiquid stocks,
[140]
you could have a green profit.
[142]
But if you go to sell your
stock, if there's no bidder,
[146]
if there's nobody bidding that stock,
[148]
you may have to sell
20, 40, 50 cents lower
[152]
than you originally intended
[154]
because you've gotta
keep lowering your offer
[156]
until you get a bidder that steps in.
[159]
That is the biggest reason to
avoid pre-market liquidity.
[163]
Second thing is many times
these stocks are moving on news
[169]
that nobody has actually
taken the time to interpret.
[174]
Many, many traders do very well
by shorting these big movers
[179]
in pre-market because often
whether it be algorithms
[182]
or uninformed traders, people
just start buying the stock
[186]
because there's a new headline.
[187]
Hopefully you don't do that.
[189]
I talk about it in a lot of these videos.
[192]
Digest the news.
[193]
Don't get bitten by FOMO,
the fear of missing out.
[197]
Just 'cause there's a new headline
[199]
with a buzz wording title does not mean
[201]
you should just be clicking buy
[203]
before you even have a
chance to digest the news.
[206]
And that's what we see in pre-market.
[208]
Especially we call it the 8:00 a.m. rush
[211]
in stock trading, day trading circles.
[215]
Many brokers accounts
might not let you trade
[218]
until 8:00 a.m.
[219]
A lot of these stocks know that
[221]
and they will time their press releases
[223]
for exactly 8:00 a.m. to
get everybody to rush in
[227]
and buy all of their stock.
[229]
So avoid pre-market trading
[231]
unless you feel comfortable
digesting the news,
[235]
you think it's a justified move,
[237]
but don't just click buy, buy, buy
[239]
because you see a new headline.
[241]
The other thing to avoid
[242]
is just let the market digest the stock.
[247]
You can't beat the market.
[249]
You can only react.
[251]
One of my favorite trade
setups is we call it
[254]
that kind of dip and rip
idea in StocksToTrade Pro.
[259]
You'll see these stocks that spike quickly
[261]
then you get the early profit
takers around the market open
[266]
then the stock can stabilize
[268]
and then re-trend towards
the high of the day.
[271]
That's that 9:45 a.m. window.
[273]
We love for those high of
day reclaims we call them.
[277]
So the biggest thing is,
look for that pattern.
[280]
Let everyone else chase the stock.
[284]
Let everyone else blindly click buy.
[287]
Your idea is you wanted to
make an informed decision.
[292]
Avoid illiquid stocks.
[294]
And if you don't have
time to digest the news,
[297]
don't rush into a trade.
[300]
It will only lead to losses.
[303]
Be informed, take your
time, do not get stricken
[306]
by the fear of missing out.
[309]
Thanks for watching our video.
[310]
Be sure to comment below with
any trading related question.
[313]
We love answering your questions.
[315]
Also like and share with your friends
[318]
and be sure to subscribe to be notified
[320]
as soon as our next video hits.
[322]
And if you're looking to
expand your trading knowledge,
[324]
don't forget to check out
all of our other videos.
[327]
And be sure to click the trial below.
[330]
Check out StocksToTrade.
[331]
I think it is one of the best,
[334]
most rapidly advancing
softwares out there.
[336]
Be sure to check out our trial.
Most Recent Videos:
You can go back to the homepage right here: Homepage