The Dow was down over 950 points on Monday…
Fun times!
But if you know me by now, you know that I’m okay with that.
All the day trade and penny stock plays at our fingertips carried the day for us! So many winners…
From low floaters to short squeezes, to penny stock catalysts…you name it, we had it.
If you haven’t already, I urge you all to focus on these types of trades. You can still have success no matter what the broad market is doing.
There’s always an opportunity!
Speaking of opportunities, wanna start your week off with a big win?
Monday morning gives us a special trading window that doesn’t exist at any other time during the week.
The Monday setup has brought 100%+ gains…in just one day!*
I’ve studied and perfected this trade. Now I want to share it with you.
Learn it for yourself right here in my video tutorial.
My next question is this…
Do you love the thrill of day trading like I do?
Many day traders look for opportunities outside regular market hours — like pre-market.
Things may seem calmer before the bell. But just because it’s quieter doesn’t mean it’s easier…
In fact, quite the opposite is true.
So, before you dive in, let’s discuss three key things you need to understand about trading pre-market.
If you follow these rules and stay disciplined, there are legit opportunities.
But if you wing it? You’re playing with fire.
Three Rules to Trade Pre-market Like a Pro
Volume Is Everything
One of the biggest traps in pre-market is chasing a low-volume spiker. Don’t do it.
Just because a stock is up doesn’t mean there’s enough liquidity to get in, or more importantly, to get out.
If there aren’t enough buyers, you’re stuck.
And getting stuck in illiquid pre-market action can be even worse. It’s a fast track to taking bigger losses than you planned.
So what should you look for?
Simple: volume relative to float, or float rotation.
Make sure there’s real interest, not just a blip on the scanner.
Read more about float rotation right here.
- Respect the News, But Don’t Blindly Trust It
This is especially true right now as the mainstream media is making things seem worse than they are.
Pre-market is prime time for press releases. Most of them drop around 8 a.m. ET.
That creates opportunity…but also chaos.
Let the dust settle. Let the chart do its thing. You want to see volume, consolidation, and a setup you recognize. That’s when you can start planning your trade.
Want a shortcut?
I use Breaking News Chat.
With BNC, two veteran Wall Street analysts scan the news, filter out the fluff, and alert stocks before the crowd catches on.
- If You Buy in Pre-Market, Sell in Pre-Market
Whatever happens in pre-market often gets erased when the market opens…
Volume explodes. Longs take profits. Shorts pile in. The whole personality of the stock can change in seconds.
Don’t destroy your account because you overstayed your welcome. Take the win and move on to the next trade.
And remember, if the same opportunity comes back after the open, you can always re-enter with a fresh plan.
Never force a trade if the setup isn’t optimal.
My Final Thoughts…
Let me be clear…
Pre-market trading isn’t for everyone, especially new traders.
I’ll say it over and over again until I’m blue in the face. If you’re just starting out, follow my 9:45 am Rule. You’ll be happy you did.
Trading pre-market, or anytime, is not about chasing green candles or jumping in because something’s moving. You’ve gotta have a plan, discipline, and the right tools.
To recap, here’s your game plan:
- Wait for volume
- Respect the chart, not just the news
- And if you buy in pre? Take the win in pre.
Stick to the rules. The setups are out there, but you have to be ready.
Have a great day, everyone. See you back here tomorrow.
Tim Bohen
Lead Trainer, StocksToTrade