Pre-Market Trading...Is it worth the risk

Discussion in 'Trading' started by gimp570, Oct 30, 2008.

  1. gimp570

    gimp570

    I have been doing alot of premarket trading lately and have had mixed results...

    What do you guys think about premarket trading?
    I trade the stocks that have the most volume that moring ..so they are earnings or big news plays...

    Do you guys trade the stocks with big news/earnings or are they to wild and not worth the risk



    thanks
     
  2. It's pretty tough to make money pre-market. Often times you'll see a stock trading up or down, just to open unchanged on NYSE or Naz. And, those who might actually "know" something about a particular stock, versus the the rest of us, tend to have an obvious advantage. Lack of liquidity can add to the problem as well. Another concern are the automated programs that some employ that will display the same pennies, but different whole dollar amount, to trap unsuspecting traders (this happens more than you might think).

    FWIW,

    Don
     
  3. Jake69

    Jake69

    i've been trading using pre-market data, to trade intra- day. i joined www.daytradetowin.com recently and they use pre market data or overnight data to calculate whether to go long or short intra day. they have a pretty good track record and for the last month i've been doing great. premarket is tough to trade unless your using it like i do
     
  4. gimp570

    gimp570


    Yes there are alot of ups and downs trading pre market....I think i had much success when i first started trading pre market...and now i think its screwed up my mind ...as far as trading goes....


    i dont know what to think
     
  5. gimp570

    gimp570

    however.;..if you are looking for action first thing in the morining




    then its not a bad way to go
     
  6. Yeah, my brother wakes up at midnight or 1AM (pacific time) just to "play" with Emini's...not stocks though, ....we like to wait for the NYSE openings....


    Don
     
  7. NoDoji

    NoDoji

    IMHO, shorting in extended hours after bad earnings news, IF you catch it quickly is pretty solid.

    Also if you know how a company's stock reacts to earnings and its support/resistance, you can probably do well. I made a very accurate call on AAPL's recent action based on having watched and traded them for months and seen how the price reacted to previous earnings. Here's my post:

    10-21-08 03:04 PM

    What's with the trading halt? Why can't they just keep the stock live while the earnings news streams across the wire one little chunk at a time while blind traders hit their hot keys as confusion reigns - long, short, long, short, long, short, yikes! downside guidance, test that 85 level, OK now everyone pile back in to 100 and beyond!

    As soon as trading resumed, AAPL dipped almost to 85 support then rallied to 103. I kicked myself for not trading my own call!

    I generally avoid extended hours trading because I too got mixed results and didn't find any real advantage. I have however used premarket to to take profits on positions held overnight, before the crowd drives the stock any which way.
     
  8. Absolutely but only if you know what you're doing. Lots of free money in the pre market. People panic and sell too low, buy too high, or just say fuck it and decide not to care about .50 or 1 point.
     
  9. gimp570

    gimp570

    Yes sometimes the moves are greatly exaggerated
     
  10. kxvid

    kxvid

    That is an excellent way to make money. Just check out this chart from today:
    [​IMG]
    Greatly exaggerated moves for sure.
     
    #10     Oct 30, 2008