Pre-Aftermarket Trading

Discussion in 'Stocks' started by Aeroseal, Jun 26, 2008.

  1. Aeroseal


    Hi all. Just wanted few clarifications on premarket/after market trading. Are these recommended for amateur traders? For instance today I were able to get news on PHTN takeover at 7:40am and although I do not have a trading account went to aol finance site to check on premarket price(15 delay posting) and it was at $11.68. If I were trading and bid for it at that price would I have been able to get it. Similarly around 8:30am still in premarket, the price soared to $15.20. Does that mean I could have sold it at that price and made a 30% plus profit!

    How is the after market price determined, supply and demand or other factors come into play. Does that after market price determine opening price for the following day.

    it worth relying on premarket specially after perusing extensively through business wires for tips, breaking news, expected data etc? Is this a good starter strategy?

    Your feedbacks appreciated. Thanks all.