This is just a basic blog post, but it is extremely important if you want to learn how to trade…and I want more millionairestudents!
“A period of trading activity that occurs before the regular market session. The pre-market trading session typically occurs between 8:00 – 9:30 A.M. EST each trading day. Many investors and traders watch the pre-market trading activity to judge the strength and direction of the market in anticipation for the regular trading session. Many retail brokers offer pre-market trading, but may limit the types of orders that can be used during the pre-market period.”
Download this short PDF to learn about pre market and after hours trading.
Some people think that the stock market opens and closes at 9:30am ET and 4:00pm ET. That is not the case. This confused a lot of people when I got such a good sale on a stock last week. I got in around $5.70s on the prior day and was aiming for it to go to $6 on a short squeeze. It was still over valued when I bought it, but I’ve learned not to estimate seeking alpha articles. It ended up touching $6 in pre-market trading so I got out in the $5.90s. I was never expecting this to go to $7 or $8 (which it didn’t) since there wasn’t a catalyst to move it drastically higher. There had just been some nice consolidation around the $5.60 level so I wanted to catch a 40 cent bounce.
It was pretty choppy pre-market., handing around the $5.87 level. Then there was buying around 8:30am and it touched $6 so I got out around $5.96. The point is that I got the buy, sold it around my goal, and took my profits.
A lot of people criticized me for this saying that they couldn’t sell pre-market because their broker had not enable them to do that, but that isn’t my fault. I send out alerts of what I am doing, and that can be pre-market and after-hours. I’m here to teach you how I trade, and that includes those time frames.
When a stock is trading at or near my goal pre-market, I’m going to take my profits!
I’m not going to risk staying in just so I can sell when everyone can sell or buy when everyone can buy. That is a stupid risk to take. You guys have to make sure you are enable to buy and sell pre-market! That is why I have a list of my preferred brokers on my website for you. When the market opens you’re going to have a lot more volume, and in the case of a stock like $YOD, it takes a while for it to go up even just 10 cents when there isn’t another seeking alpha article. There were plenty of buyers in the pre-market so it was pretty easy to get my sells through.
In the case of $YOD I would have lost money if I had waited until the open. There was no opportunity to sell it at the open since it crashed about three minutes before that. The crash right before the open was actually really weird and I’m not sure what happened. Maybe an analyst said something negative, but the point is that there wasn’t a good opportunity to sell during market hours. It’s sad that people that don’t have pre-market trading lost money. You should all get brokers that allow you to trade pre and post market hours so that when you see the right price action, you can make the trade and take your profits!
People that don’t have the extra trading time are basically going into a gun fight with a knife. You are reducing your odds of profiting because you have a worse setup. Pre-market trading in particular is sometimes a necessity. I want you to profit as much as possible, and pre-market trading is often a part of that. You want the maximum amount of time to get in or get out.
I really don’t like selling in pre-market and would rather wait until the open, but my intention is to profit and I’ll do what it takes. You can’t try to force a trade on your schedule. One of my recent examples would be $YOD on Valentine’s Day. I was in the Florida Keys with my girlfriend and I thought $YOD looked like a short in the $5.70s. It ended up not cracking support so I got out of my trade around $5.80 and lost money. But then while we were out at lunch I saw that it ended up falling to the $5.40 level. So even though I would have been right, I lost money, and I deserved to lose money since I tried to make the trade fit my schedule. I don’t want you to have a lot of “coulda woulda shoulda” moments like that.
When you make a trade, you need to consider what your schedule is going to be for the next few hours or days. Maybe you take a smaller position or you don’t make the trade at all. Missing out on profits is better than actually losing money.
My intention is to profit, and that is what I am here to show you how to do…I want morestudents to come on TV show likes this: