Two rules for trading KITT

Yesterday we had another incredible call out of the Breaking News Chat…

And so many SteadyTrade Team members nailed trades — I love to see that.

But when the market opened, the stock was choppy. And you had volatility halts to deal with…

So some of the best opportunities were in premarket.

I don’t recommend premarket trading if you’re new, but with more experience, you can catch 80% gains in premarket using one simple rule….

Don’t worry — if you’re new and avoiding premarket trading (like you should), I have trading tips for you too.

Rules For Trading Premarket Runners

In premarket, Nauticus Robotics, Inc. (NASDAQ: KITT) announced it was awarded a multi-million dollar U.S. government contract.

The Breaking News Chat team alerted it when it was trading at only $3.50 per share.

If you’ve been following me, you know that government contracts are a huge catalyst.

So it definitely should’ve been top of your radar.

And a few minutes later during Pre-Market Prep, it was alerted as a chat pump. I liked that KITT checked the boxes.

And when we have all those criteria, what are the rules?

We have two…

If you take a position in a premarket spiker, I always say buy in pre, sell in pre.

If you have profits, lock them in before the market opens. Because that’s when you can get choppy price action.

Plenty of traders in the SteadyTrade Team locked in profits in premarket. They took their 30 or 50-cent per share move and they were out.

And that’s the safe play. By the time the stock was trading at $5.50, it was up $1.50 per share from the chat pump.

It doesn’t matter if the stock went up to $9 in premarket or after the open.

They took safe trades…

And you can always get back in. But when the stock’s a chat pump…

I like to wait for a post 9:45 a.m. dip and rip on chat pumps because nine out of 10 fail at the open.

But this rule can also save you from getting chopped around in moves like KITT had yesterday morning.

It ripped above the $6 premarket high, but it happened before 9:45 a.m.

And the move came right after a halt and quickly failed.

The rule kept you safe!

But if you miss the move in premarket, and don’t get a post 9:45 a.m. dip and rip, it doesn’t mean all is lost…

When you have big runners like KITT, there are always multiple ways to play it. Having rules doesn’t mean you have to miss a trade.

They just help you focus on the highest probability moves…

So if a big premarket runner goes wild at the open and spikes straight up — look for an afternoon VWAP hold pattern.

Or if it becomes a wild spiker that halts all the way up and doesn’t give you an entry…

We let it calm down, and if it closes near its daily highs, we watch it for a weak open red to green move the next day.

I lay these rules out every day for Pre-Market Prep and SteadyTrade Team members…

And if you follow the rules, stay disciplined, and have realistic expectations you’ll get rewards over time…

Because the reason most people fail is that they try to get rich today.

What I teach traders is how to build good habits now, so you can build a career being a consistently profitable day trader for many years to come.

Have a great day everyone. See you back here tomorrow.

Tim Bohen

Lead Trainer, StocksToTrade