Trading Was HARD Until I Learned THIS Premarket Trading Secret

Summary

In this comprehensive guide, the Humble Trader unveils his day trading secrets, detailing a meticulous pre-market routine that sets the stage for consistent returns. From waking up at 4:30 AM to scanning for stocks, analyzing news, and performing technical analysis, he shares his strategies for selecting profitable stocks and building a watchlist. He also emphasizes the importance of planning trades and trading plans, offering pro tips and resources for both new and experienced traders, including free alternatives to premium tools.

Takeaways

• 🌞 The speaker's day starts at 4:30 AM, emphasizing the importance of a disciplined morning routine for pre-market preparation.
• 🛠️ A trade ideas scanner is used to find stocks with significant gaps up or down, highlighting the need for a tool to identify potential trading opportunities.
• 📈 The speaker sets specific filters for scanning stocks, such as minimum price change and pre-market trading volume, to ensure they have enough volatility and liquidity.
• 📊 Free alternatives to premium scanners are suggested, like Webull, Thinkorswim, and Finviz, for those starting in trading without incurring additional costs.
• 📰 Fundamental analysis is still important for day traders, even though the holding period is short, to understand the reasons behind significant stock movements.
• 🗞️ News platforms like Benzinga Pro and Briefing.com are used to quickly gather information on news catalysts affecting stock prices.
• 📝 A trading plan is created by compiling information on selected stocks, including their ticker, price, and reasons for gapping, into a Word document for easy reference.
• 📉 Technical analysis is performed to identify key levels, entry points, exit points, and risk management strategies for each stock.
• 📝 A written watch list and trading plan are shared with the speaker's trading community on Discord, promoting transparency and learning.
• 🕒 The first 30 minutes to an hour of market open is considered the most profitable time for day trading, where immediate price movements can be capitalized on.
• 📓 Keeping a trading journal is recommended for tracking performance and behavior, as it aids in continuous improvement.

Q & A

What is the most crucial part of the speaker's trading career?

The most crucial part of the speaker's trading career is the hours of preparation during the morning pre-market trading routine.

What time does the speaker typically start their day for trading?

The speaker usually starts their day around 4:30 a.m., as they live on the West Coast in Vancouver.

What is the first step the speaker takes during their pre-market hours planning?

The first step the speaker takes during pre-market hours planning is scanning for the best stocks to trade using a trade ideas scanner.

What are the criteria for selecting large cap stocks in the speaker's scanner settings?

The criteria for selecting large cap stocks include a minimum change of 2%, a price range from $5 to $400 (sometimes up to $500), and a pre-market trading volume of at least 20,000 shares.

What are some free tools the speaker recommends for scanning stocks and building a watch list?

The speaker recommends using the desktop version of Webull, the scanner on the Thinkorswim platform, and the Finviz platform as free tools for scanning stocks and building a watch list.

What is the purpose of fundamental analysis in the speaker's pre-market routine?

The purpose of fundamental analysis in the speaker's pre-market routine is to understand the intrinsic worth of a company's stock and to identify the reasons behind the stocks' gap up or down overnight.

Which news platforms does the speaker use to help with news research during pre-market hours?

The speaker uses Benzinga Pro and Briefing.com as news platforms to help with news research during pre-market hours.

What is the speaker's approach to technical analysis before the market opens?

The speaker's approach to technical analysis involves charting, planning overall trading strategy, identifying key levels, entry points, exit points, and risk management areas for the stocks they plan to trade.

How does the speaker incorporate earnings news into their trading strategy?

The speaker uses Benzinga and Briefing to quickly read earnings news, the headline, and the summary to understand why stocks are gapping up or down after earnings reports.

What is the speaker's advice for part-time traders with limited time to trade?

The speaker advises part-time traders to focus on the opening 30 minutes to an hour of the market, which is when they can make quick trades and execute the plans they prepared during pre-market.

What does the speaker suggest as a bonus Pro tip for planning trades?

The speaker suggests planning trades the night before to save time in the morning and start narrowing down a list of potential stocks in play for the next day.

How does the speaker emphasize the importance of having a trading plan?

The speaker emphasizes the importance of having a trading plan by comparing trading without a plan to going to war without a weapon or getting married without a prenup, indicating that it is crucial for success.

What is the speaker's routine after the market opens for executing trades?

The speaker's routine after the market opens involves trading from 6:30 a.m. to about 8:00 a.m., executing the strategies mapped out during the pre-market trade planning session.

What is the speaker's view on the importance of preparation outside of market hours?

The speaker believes that most of the work in trading is done outside of market hours and before entering a position, emphasizing the importance of preparation in increasing the chances of success in trading.