Every trader wants to get a jump on the market…
But what if I told you that rushing in too early could actually be the fastest way to blow up your account?
There’s a certain time of day when emotions run high, price action gets unpredictable, and countless traders make costly mistakes.
That being said, using the highest-quality setups you can find will definitely increase your odds of success.
My Monday Setup is a perfect example of that. If you haven’t heard of it yet, let me explain…
Every Monday, the market kicks back into gear after a weekend of rest… And that reset creates a unique opportunity!
As the first session of the week gets started, there’s a specific pattern we look for, one that appears again and again with uncanny consistency.
And it has delivered some incredible wins!
Take yesterday…
HCW Biologics (NASDAQ: HCWB) announced its development of a groundbreaking treatment for certain types of cancers… And the stock took off, gaining 113%*!
These are the kinds of morning spikes we hunt for every Monday!
Now I want to teach you how to spot them for yourself!
Watch the video below for the full trade breakdown and strategy tutorial for my Monday Setup.
Besides not using proven, repeatable patterns, I’ve seen traders burn through accounts in minutes just because they couldn’t resist the urge to jump in too soon.
The sad part?
It’s 100% avoidable.
There’s a simple thing I do that keeps me out of the chaos.
Table of Contents
Pre-Market Trading Is Not For Everyone
Almost every single morning during my Pre-Market Prep, I repeat the same thing…
“If you struggle with taking stops, you should not be trading pre-market.”
In other words, if you can’t stomach a loss or you hesitate to cut your position when it dips into the red, you’re not ready for pre-market trading. Period.
Now, let’s break down why I’m so cautious about pre-market trading.
The pre-market session runs from 4:00 a.m. Eastern until the market officially opens at 9:30 a.m.
Sounds exciting, right?
Well… here’s the reality:
- Liquidity is thin. There just aren’t enough buyers and sellers. That makes it harder to enter or exit trades efficiently.
- Spreads are wider. You could get stuck paying way more (or selling for way less) than you planned.
- Volatility gets exaggerated. With so little volume, a small order can send a stock flying up or down in seconds.
That’s why newer traders often blow up accounts in pre-market.
So then the question is… why do some traders even bother with it?
The truth is, there are opportunities. Experienced traders sometimes capitalize on breaking news before the bell. For sure, there’s money to be made.
Remember though, you don’t need pre-market trading to be successful.
Patience Is a Virtue in Trading
I tell traders, especially new traders, to wait until 9:45 a.m. before making their first move.
Why 9:45?
Because the chaos of the opening bell is usually over by then…
Overnight news, market orders, and all the pent-up activity from the weekend or previous day tend to get shaken out in those first 15 minutes.
By waiting, you can analyze what’s really happening instead of jumping into the noise.
And by the way, when I say “9:45,” that’s not a hard and fast rule. I’m talking about a window of time between around 9:40 to like 10 a.m… Just not before or at the market open!
Another time I love to trade is 2:00 p.m. That post-lunch window often delivers cleaner moves, more predictable patterns, and less of what we call “chop” in the market.
A Recent Real-World Example
Friday, I highlighted ModivCare Inc. (NASDAQ: MODV) during Pre-Market Prep because it was a low-float stock…
Plus, it had a bullish signal from our algorithmic system, Oracle.
But I also warned to be careful trading it before the opening bell because it looked really choppy. It was a surer play after 9:30.
And sure enough, 9:45 came…
In less than two hours, MODV reached a high of $1.4299, for a gain of 64%*.
MODV Intraday, One-Minute Candles Chart; SteadyTrade
Oracle nailed it as well with a green entry signal at $0.85 per share.
My Final Thoughts…
At the end of the day, trading isn’t about being the fastest or the earliest in the market. It’s about discipline.
Because the best opportunities aren’t hiding in the dangerous pre-market hours…
They’re right there in the regular session, if you know where to look.
That’s why I urge you to use the 9:45 a.m. Rule. It gives you cleaner moves, better entries, and the kind of consistency you need if you want to stay in this game long term.
You don’t need to chase every tick or dive into dangerous waters. Slow down, wait for quality, and let the market show you where the real opportunity is.
Have a great day, everyone. See you back here tomorrow.
Tim Bohen
Lead Trainer, StocksToTrade
P.S.
No traders, even the best ones, have a crystal ball.
Tariffs are here whether you like it or not. Here are the stocks I’m watching.
Learn another one of my favorite setups ASAP.