So it's pretty my kids, 8:00 a.m. and you have your list of all the gaffer's and their news. Now. How do you exactly turn that into an actionable trading? Watchlist I'll, walk you through step by step in a three-step simple process: how to create a pre market.

Watch this spoilers, the trading plan, should have more than just a ticker in the headline and you definitely shouldn't be following chatroom alerts: that's telling you to buy the high of the day break out of every single stock. That has a news title for beginner traders trading with a small account if we just focus on creating your own trading plan and trading. Your plan they'll eliminate a lot of the formal, chasing and other bad habits such as holding your losers for too long, and if it's too much work, then maybe following chat room alerts easier, I heard they are making a train Lamborghinis every single day. Now, in the last video I talked about step 1, which is finding the pre market Gabor's and step 2, which is finding the news headlines and analyzing whether the news is positive, negative or blatant pump.

Like I mentioned in the last video just because the news is positive doesn't mean the stock will go to the moon, and even if a press release seems like doesn't mean, the stock can now go 300 %, 400 % in this video we'll be going over the Next three steps into creating a pre market gameplan and if you'll appreciate videos like these, please remember to drop me a like for the YouTube algorithm. So after you've done step one and step two. The third step is drawing out the support and resistance lines of a stock on the daily chart. Let's take a look at clvs, a biotech smoke app stock, that's been very hot lately, so after identifying all the news, we can see that this stock had a great q3 earnings upgrade by Zacks and also a potential merger and acquisition deal.

So now we know fundamentally there's news to justify this gap up and potential follow-through to the upside and the stock, isn't just up on air or fluff news or even worse, no news at all which could put you in a potential risk of a t12 Holt by The Nasdaq, so if we're looking at the stock pre market on November 29th, we can see that a gapped up above the previous day's highs and Wednesday November 27th around 12 60s. But before we zoom in to analyze the intraday levels, we want to look at a stock clvs on a daily chart. First, so you can see on the day D, the 1260s level correspond to a daily support line, as you may have remembered from a how to draw support and resistance lines. Video, the areas that show above-average trading volume as well as these major dips that you shapes on the daily chart.

These are areas of interest and you've. If draw a line across a 12-6 East price level, you can see the line has touched at least three candle areas. So these price levels act as psychological support and resistance. You can see that this price level used to act as support for the stock to bounce off once or twice over here, and once that support is broken, the stock tanks even further, so that previous support becomes later resistance.

So that's just a brief summary of how you draw support and resistance levels for your daily watchlist. So in this case for clvs, once we broke above the 12 sixties prior resistance successfully and hold above it, that should be the new support level and give that support. Hold you can see the next resistance is 15 50s and after that 16 50s. These are all just basic technical analysis and, like I said in a previous video, how to let winners run by utilizing the daily charts.

Just because you draw resistance lines around the 1650 1810 and the 1950s area does not guarantee the stock would run that high. But with enough volume, momentum and hype it could nothing is guaranteed 100 % in day trading. I don't care what all these day trading market didn't tell you, there's no guaranteed Lambo handout and there's no secret sauce they'll make you a million dollars in six months. The only thing now guarantee you a hundred percent success rate is, if you smash the like button to go long on this channel, we have grown from zero to now over 25,000 subscribers in less than 12 months.

So somebody do the math here. I think that's like ten thousand percent ROI. Thank you guys so much for your support and no there's no short locates available for the channel, so after you've completed the step three and draw our support and resistance lines on the daily chart. The fourth step is to look into key data on the stock that includes the float market cap short interest, financial metrics and SEC filings.

This step isn't as important if you're trading real companies like Tesla Roku and Facebook, but this is crucial if you're trading smoke a penny stocks with a small account. Like I talked about in this video, you cannot just blindly buy every single stock gap up. That has news, so let's continue using clvs, as example here, so I'm using the key data on this stock in the daily charts price levels as of November 30th, because I cannot see the future. I know there are many gurus out there who claim they can do so and they're always a hundred percent right.

I am NOT like that, so we can see that a float for clvs is fifty point, seven million. So that means it's not a low float stock. That will squeeze two hundred three hundred percent within ten minutes like the rest of the penny stocks and its market cap is around eight hundred million, so it's considered still a small cap stock, but it's not a micro cap penny stock like PS, TV or AP DN, But since the market cap with CoV s is more substantial and a lot bigger than the other micro penny stocks, that means bigger institutions who can actually invest and trade the stock, rather than mostly retail, like the rest of the penny stocks. So that's something very important to make note of when you're creating your pre market watch list.

Like I mentioned in my various trader psychology videos, you wan na know what kind of traders you're up against and whether it's smart money or dumb money on the other side. Now the next part to step number four is looking into SEC filings, it's very important to identify that clvs is a biotech company. If you see many of my SEC filings videos, you know that these biotech companies are almost always poor for cash. That's even more so important for micro-cap penny stocks like PS TV and B PTH.

So it's important to look at these companies to see if they have an active s1 o s3 to register to do an offering. So after you looked at all the key data for the stock and the SEC filings, the fifth step is the most important, but often the hardest part which is putting together all the information you've collected. So far from step. One to four and using your past experience in screen time in the current market conditions to plan out the most likely scenario to happen short term.

What day traders so most likely were looking at intraday timeframes and making educated guesses and what the stock could do to the upside or downside so putting everything together now for clvs step one? Yes, it was a gapper step two. Yes, it does have valid news step. Three drawing out key resistance on the daily charts of where the stock could potentially go to, if there's enough momentum and volume, and also the support areas of where the stock could potentially dip down to and consolidate in that area before moving the next leg up that For the stock is not a low float, it's a small cap, but not a sketchy penny stock. It also has a bigger market cap, so there could be more funds and institutions playing it.

It's a biotech stock with an active shelf registration. So that means they could try to raise some money soon, but just because they could use it doesn't mean they will do so right away. They can do that tomorrow next week way, even next month. So looking at clvs daily charts, you can see that it's been very hyped up recently with above-average volume.

It's also going parabolic technically on the daily chart and breaking above all the resistance levels, and if you know anything about day trading, you know to not fight the trend, especially when there's bigger institutions and smart money involved. Now, looking at the past behavior and the intraday price action on clvs, you can see that this stock likes to push early in the morning and then quickly pull back. Sometimes they even sell off and go red on the day. First, before consolidating and voting coming back in for it to go red to green and to rip even higher on a breakout.

So that's why I'm November 26, instead of chasing the high of the day break out on clvs, I made the plan to short the retest of yesterday's highs and covering into every single wash early in the morning and that's because of the string time and experience. I've spent watching the stock and seeing how it treats intraday and once the selling slows down, we could potentially loan the curl on clvs and if there's enough volume, we could see the stock going red to green and breaking above yesterday's highs. And all these price levels are determined pre market before I entered a stock using daily support resistance levels previous day closed and also sometimes pre market highs and lows - and I repeat, the same process: steps 1 to 5 for all the 4 to 6 stocks that I'm Watching every single morning - and I start doing so from 4 a.m. Pacific time - sleep what's that it's become really fast now and each stock should take me about 5 to 10 minutes and sometimes a little bit longer.

If I'm looking at dirty SEC filings and stocks, I see gix and ap DN, I'm sure everyone has a different process for creating a pre market watchlist. But I know for a fact: they're having a ticker and the headline isn't enough and just sharing my Watchers planning and what worked really well for me so far, if you guys have a different process of creating a watch list. Please do let me know in the comment section below, as always, these detailed day trading videos take me 10 to 12 hours to make. So if you wouldn't mind tapping the like button, I'd really appreciate it and please do subscribe.

If you want to see more in the future, thank you guys so much for watching. As always, I'm the Humboldt trader and I'll see you guys next week.