How To Create A WINNING Pre Market Day Trading Plan

Summary

In this video, the trader shares their three-step approach to creating a successful pre-market trading plan. First, they establish key support and resistance levels for the day. Then, they determine the market trend and decide whether to focus on long or short positions. Finally, they create a detailed plan, using key levels, trend confirmations, and entry strategies to guide their trades. By following this structured approach, the trader enhances consistency and avoids impulsive decisions, leading to more profitable and focused trades. This plan highlights the importance of preparation and patience in day trading.

Takeaways

• 😀 Establish a pre-market trading plan to improve consistency and profitability.
• 😀 Avoid jumping into trades without preparation; focus on setting clear levels for support and resistance.
• 😀 Plan your trades before the market opens by identifying important levels and potential trends.
• 😀 Use the five-minute moving average to determine whether you should focus on long or short trades.
• 😀 Identify support and resistance areas based on previous price action and market behavior.
• 😀 Don't trade impulsively — wait for the right opportunities based on your established plan and levels.
• 😀 Monitor price behavior around key levels, such as support, resistance, and moving averages, for ideal entry points.
• 😀 Be patient and wait for pullbacks in price to get a 'good deal' rather than chasing the market at resistance.
• 😀 Look for additional confirmations, like reversal candles or patterns, to enter trades confidently.
• 😀 Keep your trading plan simple and clear, focusing on essential levels, trends, and price action.
• 😀 Consistent planning and analysis lead to better trade execution and improved results over time.

Q & A

What are the three things the speaker focuses on to create a winning pre-market trading plan?

The speaker emphasizes three main things for creating a pre-market trading plan: 1) Establishing key levels for the day, 2) Determining the trend and focus (whether to go long or short), and 3) Creating a plan based on these factors.

Why did the speaker mention that meditating or taking an ice bath isn't part of their pre-market routine?

The speaker mentions this to highlight that successful trading isn't about using trendy activities like meditating or ice baths. Instead, it is about having a clear, focused trading plan before the market opens.

What was the speaker’s approach to trading when they first started?

When the speaker first started trading, they would wake up just before the market opened and dive straight into the charts, trying to place trades without any prior plan.

How did creating a pre-market plan improve the speaker's trading?

By creating a pre-market plan, the speaker became more consistent and profitable. It helped them approach the market with a clear focus, rather than reacting impulsively or trading out of boredom.

What is the first step in the speaker's pre-market routine?

The first step is to establish the key levels for the day. This involves identifying important resistance and support levels that will guide the day's trading.

How does the speaker share the levels they establish each day?

The speaker shares these levels in their Discord group, where members can see the levels for the S&P 500 and NASDAQ every day, helping them with their own trading plans.

What role does the 5-minute moving average play in the speaker's decision-making?

The 5-minute moving average helps the speaker determine the trend. If the price is above this average, they focus on looking for long opportunities. If the price is below it, they look for short opportunities.

How does the speaker decide whether to go long or short on a particular day?

The speaker looks at the overall market trend before the market opens, determining whether the trend is up or down. If the trend is up, they focus on long positions; if the trend is down, they focus on short positions.

What is the significance of waiting for a pullback before entering a trade?

The speaker advises waiting for a pullback to get a better entry point. This ensures they are buying at a lower price in a support zone, which increases the likelihood of a profitable trade.

How does the speaker combine their established levels with market behavior to decide on a trade?

The speaker looks for confirmation once the price hits key levels. For example, they watch for reversal patterns, like a double bottom, and check if the price is aligning with their trend and support/resistance levels before entering a trade.

What advice does the speaker give to traders regarding the importance of creating a pre-market plan?

The speaker emphasizes the importance of having a pre-market plan to avoid impulsive decisions. This plan helps traders remain patient, focused, and clear about what they are looking for in the market, leading to more consistency and better trading outcomes.

How does the speaker suggest keeping a trading plan simple?

The speaker suggests that traders don't need to overcomplicate their plan. A simple, clear plan like 'long but wait for a pullback' with a few key details is enough to guide decisions effectively.