Weekly Lesson Wednesday📝 

Pre Market Hacks 🖥

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Fail to prepare, prepare to fail 🤷‍♂️

Pre-market preparation impacts your performance throughout the trading day. It’s just facts ! Like anything in life. If you are the guy dialed in to the max ready to attack the day, compared to the fella who cracks open the computer mins before market open. You will obviously come out tops.

Look, It’s competitive out there. Modern day financial markets have millions of fuckers trying to gain the upper hand. Maybe you should too ? That’s why today, I’m going to lay out a pre-market checklist you can use to beat the folks still asleep.

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The Hacks 👓

👉 Analysis of major trends

First things first. Read stories that moved world markets overnight and consider how they will impact the U.S. session. This is a nice easy way to start the trading day. Doesn’t require much effort and locks you in. These are usually market-specific, with a central bank or economic data dominating what moves the market. However, don’t disregard the geopolitics and other news that may impact stocks or industries.

👉 Check Index Futures

Examine the highs and lows recorded by the S&P 500, NASDAQ 100, and Russell 2000 Index futures during the overnight session, as these levels will establish support and resistance during U.S. market hours.

👉 Look what other traders are up too

Nobody wants to be a sheep, but keeping an eye on the competition is key. To do this sort pre-market securities by volume to identify where others are investing their capital. Next, review open positions, as well as the flavors of the day, such as stocks reporting earnings.

👉 Find safe Exits

We have done a previous write up on entry and exit positions which I will link here. However, this is slightly different as it involves exiting pre-market, but both helpful to know. Basically if you have a losing stock you want to get rid of. Sell the stocks in the pre-market, especially when you expect to take a hit after the opening bell. Many traders can't see real-time prices until 90 minutes before the market starts. Often, other exchanges let you sell at better prices before then.

👉 Place Deep Limit Orders

If there are stocks you like but the value isn’t there. Play this game while watching the pre-market. Place deep limit orders (a type of limit order placed significantly away from the current market price, either much higher or lower. These orders are usually set by traders looking to take advantage of large price swings or sudden market movements.) on securities you want to own, but not at current prices. Then be amazed at how often they get filled.

👉 Set your range

Determine how aggressive or cautious you want to be in the morning based on your pre-market analysis. Reassess your strategy at lunchtime or when there are significant changes in short-term conditions.

👉 Acknowledge Seasonal Trends

Consider the day of the week, time of the month, the month of the quarter, and the period of the year. Each segment will generate specific price action that favors one market group over another. For instance, certain days or times may show stronger price movements or higher trading volumes, which can favor specific market groups or sectors. By understanding these patterns, ye boys can better anticipate and react to market changes.

👉 Think Outside the box

The red or green you see flashing in the pre-market is less important than understanding how or why they impact current market expectations. If you can’t interpret these changes on your own, seek advice from an expert or source to help you understand their significance. They are so many resources out there use them.

👉 Steer Clear of the Crowd

Make a list of stocks or assets that are showing strong upward or downward momentum. After identifying these potential opportunities, hold off on making any trades yourself. Instead, wait for other traders to make mistakes or face losses. Once you see that happening, look for favorable, lower-priced entry points to buy or sell if there is one. If there isn’t don’t bite and be smart.

⭐The Bottom Line⭐

Your pre-market routine sets the stage for the rest of the trading day. Get ahead and make a plan. Do the work and rewards will come like anything in life. These are just simple guidelines and checklists you can incorporate. I would encourage you to find your own routine and stick to it consistently for the best results. If you do that I’m sure you will leap frog the competition that are snoozing.

Thank you
That’s All Folks

Thank you for reading. Like usual. Not financial advice.

Full disclaimer here

Cheers,