Are you getting frustrated watching premarket spikers run without you in them?
As frustrating as that might be, you might actually be doing something right…
Something that can save you from heartbreaking losses more often than not.
Because as day traders were not trying to get lucky…
We’re trying to build consistency and focus on good setups.
And a winning trade doesn’t always mean it was a good trade.
Let me explain why…
When It’s Okay To Ignore a Premarket Spiker
Oncorus, Inc. (NASDAQ: ONCR) is a true penny stock that was running in premarket on Friday.
I was watching it spike during my morning live webinar so I started digging for a ‘why’…
It’s a cancer stock … But the Breaking News Chat team said there was no news — it was just a 100% momentum mover.
So right away I said to wait until 9:45 a.m.
Because if you’re trading in premarket or right at the market open is always best to have a catalyst.
Obviously, ONCR ended up continuing higher despite not having any news…
ONCR chart: 1-day, 5-minute candle — courtesy of StocksToTrade.com
So you can get mad about missing a setup, or think my opinion is wrong. But let me ask you…
What do we always try to do before we place a trade?
We always try to stack as many odds as we can in our favor.
And when we’re stacking the odds in our favor it’s a much higher probability if you’ve got a catalyst.
If you’re trading something with no catalyst you’re not trading a high-probability setup.
These kinds of plays always end the same. As you can see on the ONCR chart, it collapsed and bagged everyone who didn’t sell.
If you like to waste day trades and capital on low-odds setups by all means…
Some traders probably caught a piece of the move and locked it in — congratulations if you did.
But for me, this isn’t a consistently repeatable setup that can help grow your account over time…
So if you skipped buying ONCR in premarket or at the open on Friday, you deserve an even bigger congratulations.
Because you ignored a low-odds play that had the potential to blow you up. And I want you here tomorrow, next week, the week after, and next year…
I want you to grow your account and succeed.
If you want my help to do that — watch my Market Update videos three times every week and we’ll work on it together.
Have a great day everyone. See you back here tomorrow.
Tim Bohen
Lead Trainer, StocksToTrade