Prepare Like a Pro To Trade Today

“The best time to plant a tree was 20 years ago. The second best time is now.”

You’ve likely heard that quote before. Financial planners have been using it for as long as I can remember to try to get people to invest. It also applies to how you prepare to trade every day.

Show Up for “Money Monday” Fully Prepared, Week After Week

The Big Picture

The best time to build a rock-solid routine was the day you started trading. The second best time is now.

Now, if you don’t follow a routine to prepare for trading, don’t beat yourself up. I guarantee you are not alone.

Let’s look at a few things you can do starting today.

When the closing bell rings at 4:00 p.m. ET, you have three options:

1. Shut down your computer and walk away
2. Keep trading after-hours (RCTs work well after-hours)
3. Journal your day’s trades and prepare for the next day

Who do you think is gonna be the most successful over time?

Keep in mind that I mentor some traders who work full-time jobs. Some of them only trade premarket or after-hours. So, I’m generalizing here, okay?

That said, those who find success are those who journal the day’s trades and prepare for the next day.

Here’s how I like to think about it…

Today’s Closing Bell Starts Tomorrow’s Trading

Today, when the closing bell rings, journal your trades. If you’re paper trading, journal your paper trades. If you didn’t trade, but watched a stock move, journal it.

Then, prepare for tomorrow.

How?

Check for any big announcements. Companies wait until after the market closes to drop important press releases. Earnings calls often happen after the bell.

Watch what’s moving after-hours. You can use an after-hours scan to see what the biggest gainers are. Then look for a catalyst. You can always check for news here.

Update your rolling watchlist. You do have a rolling watchlist, right? If not, start it today.

From your watchlist:

• Which stocks deserve to stay on top as potential trades?
• What are the key price levels?
• What level makes the stock dead to you?
• Which stocks can be put on the back burner?

Now, let’s say you start that after-hours routine today and you do it every day going forward. As it becomes a habit, it gets easier and faster.

My Take

I also have a premarket routine.

I’m up early every day. I read scripture, do a workout, and get myself mentally ready. Then, I mentor students and do the Pre-Market Prep webinar. That means I have StocksToTrade open.

Again, I go through my watchlist, check to see what’s moving, review the Breaking News chat. If I see something actionable, I start making a trading plan.

Everything I’ve described here is doable starting today.

Watchlist

Friday’s newsletter was about why this is a great market for day-one stocks. I’m happy to say we found a solid multi-day runner in Creative Medical Technology Holdings Inc. (NASDAQ: CELZ).

CELZ is a low-floater that spiked after-hours on Wednesday (August 5), and was Thursday’s big runner.

It held up well going into Friday, still trading above the pivot point as I write this (notated on the chart).

If CELZ continues to stay above the pivot, look for breaks above resistance and risk VWAP.

Money Monday Two-for-One

We had another multi-day runner in Digital Turbine, Inc (NASDAQ: APPS), which I talked about Friday on The Big 3.

Here’s the 1-year chart:

APPS was a darling during the COVID market. It went on a massive run back then to over $100 per share.

I’m not saying it will get back to $100, but it’s a low-priced stock in the tech sector that’s broken out of the doldrums. Here’s the 5-day chart:

I think APPS is going to attract a lot of buyers from a technical standpoint and continue to move over the coming days and weeks.

On My Radar

• Nonfarm payrolls declined unexpectedly in July
• Meanwhile, the markets shrugged it off
• Here’s a free resource to help you build your watchlist after the closing bell
• The future is upon us…