All right everyone. Uh, well. the topic for today is going to be on pre-market trading strategies. So I want to talk a little bit about pre-market trading strategies.

It's about 9 a.m so this is a perfect time to have this mini class here and I may even have the opportunity hopefully to demonstrate some pre-market trading. So let's start high level, especially for those who are new and those who are tuning in watching this live. Thank you guys for being here. I hope you hit the thumbs up.

Uh, for every thumbs up that we get on this broadcast today. I will donate a dollar to charity. All right. So let's see how many thumbs up we can get on this broadcast.

We get 5 000 thumbs up. I'll donate 5 000 today. All right. So uh, let's talk about pre-market trading strategies.

Pre-market trading has become increasingly popular over the last. Uh, I would say two and a half three years of the market. So I've got my i've got my full screen camera here and I've got the whiteboard here. So for those who are new, pre-market starts at 4 00 a.m the regular market opens at 9 30 a.m it closes at 4 p.m and then after hours runs until 8 pm.

So technically, if you wanted to, you could trade from 4 in the morning until 8 o'clock at night. That would be a very long day, but a lot of traders have started trading earlier earlier now. uh, 10 years ago when I was earlier in my career. Generally, I would sit down around 9 00 a.m and I would do pretty much what I'm doing right now, which is I would look at the watch list.

I would create a watch list of stocks so we're already starting to move pre-market but on very very light volume. these would be stocks that had typically come out with some type of news. We'll talk about stock selection a little bit more in a second and generally I would wait for the 9 30 opening bell and as soon as the 9 30 opening bell would ring, I would be looking at taking my first trades and what we would see. We would see these stocks that basically had you know, no volume, no volume and then right at 9 30 boom the volume comes in.

and then because we saw this pattern, more and more traders would start getting in just a little bit before the opening bell and you would start to see these stocks that would be sort of trading sideways coming into the open, start to pull away. As we got closer to the open, they weren't waiting for the opening bell the way they used to and this has kind of gotten pushed back earlier and earlier. and earlier and earlier. Basically at this point to the point where if there's news at 6 00 A.m not only are retail traders ready to trade it, but the high frequency trading algorithms, they're ready to trade it as well.

So Six A.m Eight Seven A.m Eight A.m You know, Nine A.m. So basically, what this has become has been, um, a little bit of a race to see what stock has news and can I jump in it right now? So the way, So the pre-market trading strategy that I'm using right now is I'm watching pre-market starting on the earlier side, and then maybe between generally around 8 A.m I sit down around 8 A.m at this point. Um, for what it's worth, a lot of brokers won't let you trade earlier than 7am. So even though the market technically does start pre-market at 4am, a lot of brokers won't even let you start trading until 7am.

So even if there was news at 4 30, you might not be able to trade it. Now, the broker that I use does allow pre-market trading as early as 4 Am, and I have traded as early as 4 Am. But from a technical perspective, one of the things that's nice with this broker that I use here is that if I place an order right here, just just for instance, um, I just place an order. You know, whatever down here.

it's a live order as you can see and I didn't have to do anything to place it. The order's there. 5000 shares to buy it. It's fine.

Ready to go. However, If I went over to Td Ameritrade and tried to do the same thing, that order would get rejected and so let me show you on Tv Ameritrade. So it's what's kind of funny here is that on Td Ameritrade, both of these orders are called Time and Force Day. But on Td Ameritrade day actually just means 9 30 to 4 Pm.

It's not pre-market it's 9 30 to 4 Pm. If you want to trade pre-market you have to switch to extended hours. Boom! Now I can click the buy button and this order will go through, but it wouldn't have gone through before. So that's kind of a little bit of a funny thing.

It's it's an education point if you're trading with Tv Ameritrade. I think the same is true with E-trade as well that you have to change the time and force, uh, over the broker that I use. You actually have to change it to market day if you just wanted to be 9 30 to 4 p.m. So everything that's day goes pre-market So that's a little confusing because the same time and force does different things depending on which broke you're what you're with.

Not super, um, user friendly there, but that's just sort of the way it is. So my approach each morning when I'm sitting down to employ this pre-market trading strategy is: I sit down and I'm watching for stocks that have already started to move up. So many of you guys already know this. And by the way, thanks for those who are tuning in to this live broadcast.

I'm doing a a mini lesson here on how to on pre-market trading strategies. Uh, pre-market day trading strategies specifically. And uh, for every thumbs up that we get during this broadcast. I'm donating a dollar to charity so thank you guys for also hitting the thumbs up.

So the way I focus on trading as a day trader and you probably already know this, but I'm a Momentum Day trader. which means I'm looking for stocks that have already started to move and I'm trying to get in and ride that next wave of momentum. So if I go over here on the whiteboard when we have these stocks that are moving up kind of like this pulling back. I try to buy these pullbacks and add into these breakouts for the extension to the next leg up.

These are the waves of momentum. So Momentum Trader and the Day Trader is is in this strategy. You're always buying high. I mean you could say that this is a low entry and this is going to be a high exit.

So you but but realistically, this stock at this point should probably be up already at least 20 percent. So you're buying something up 20. You're not going to be able to do a Warren Buffett buy low, sell high within the time frame of seven minutes. That's just not going to happen.

So we buy high, We sell higher. So the question is how to find stocks to trade. So how do we find stocks to trade for a pre-market trading strategy? And this depends on the type of trader you are. But for me, as a Momentum trader, if I'm looking for a stock that's got these waves of momentum, what I'm probably going to want to look for is a stock that's very early in that first wave, right? That's kind of like in this area right here.

or maybe is on the second wave right here. You know, if it's already gone way up here, there may be more opportunity. but obviously I've missed the bulk of the move. So how do I find something that's right here? Well, let's let's define what this looks like.

This is a stock that should already be up a minimum of five percent on the day. If the stock is already up a minimum of five percent, it is exceeding the standard deviation of the market. Now if we look at, uh, the scanner, and so these are the tools that I use. I actually hired a development team to build out this tool that I use every single day.

So this is searching the entire market for stocks over five percent, moving up, and in the entire market of thousands and thousands of stocks, this list is fairly small. You know, there's maybe 20 or 30 stocks, and naturally I look at the ones that are at the top of that list. So for me, that's my first level of how I'm finding these types of stocks. I'm looking for a minimum five percent and then looking at biggest percentage gainer.

All right, I look at the biggest percentage gainer and then I want to see, well, why is it up this much? If it's up 55 or whatever Catalyst, what's the reason? Okay, so this is where now we look at the stock and we can look at Idra just as an example. So Idra is up 51 this morning and let's see. let's click on this. So I'm going to pull up the news right here.

So we got to try to figure out what's the catalyst. So Tuesday, May 17th. Um, let's see shares. Positive results from investigator sponsored trial and melanoma patients at Amsterdam Umc.

Okay, so that's the catalyst. That's the reason this stock is up. Whatever it is, it was 50. All right.

So now we understand the Catalyst. Okay, that's good. One of the things that I'm also going to prioritize are stocks between 2 and 20. Because these are the stocks that have the ability to make these big percentage moves.

A 200 stock is probably not going to go at 50 percent in one day. Very rare. A two dollar stock could go at 50 in one day. No problem, that's going from two dollars to three dollars.

That can happen pretty easily. So I focus on the lower price stocks because those are the stocks. As a day trader, I can leverage more aggressively and capture a bigger piece of those bigger percentage moves. Remember, if a stock goes, um, you know, up.

uh, whatever it is, you know, from here to here, and that's plus 100, you're never going to capture perfect entry. Perfect exit at best. You might capture half. You know you get in here.

you sell here. you get back in here. You sell here. So whatever the potential is, you know, cut that in half of what you actually might get.

So the thing, and here's the problem. If you're trading a stock that you think maybe has the potential to go up six percent today, half of six percent is three percent if you've got a two thousand dollar account. Three percent profit. I mean, I'm not saying that, that's you know nothing if you were doing that consistently daily.

But but let's let's set the bar a little higher. Let's see if we can find bigger movers. And generally I can. And this is.

This is how I've built my career. So you know, in the effort of being transparent. Um, this right here. this is the printed out, um, audit of my broker statements.

I have this audited at the end of each calendar year. So at the end of the last calendar year, I had, um, the last 60 months of trading. You could see there. if that comes into focus: 9.5 million dollars of profit 159 000 monthly average Over that 60 month period And I started this account by the way, up here with 583 dollars in the account 583.

Now I say that not to brag, not to say that my results are typical, not to have you think that you'll achieve some similar result. I'm saying that because I want you to know that the person that you're learning from right here actually knows what the heck they're talking about. I've been trading for a long time. I am a successful trader.

No, my results are not typical, but if you want to learn about the market, I think it sure makes sense to learn from someone who knows you know what the heck they're talking about. And I do so from 583 dollars now to over 10 million dollars in gross profit. Uh, and the account is still growing and a large percentage of that profit has been from pre-market trading. So now what I want to show you here.

Um, so if we go back here, I'll show you the metrics from pre-market in just a second. But let's go back to talking about finding the right type of stock to trade. So each morning when I sit down here to try to implement this pre-market trading strategy, I'm looking at the leading gappers and I look at the top three or four. So today Idra is the leader and you can see that the wave started.

It started moving up but it pulled back, went a little higher and now it's starting to stair step down. It's pulling back a little bit. so this one had a short wave of momentum, but it didn't really continue higher. and this is one where I I really wouldn't have traded anyways because I don't usually like trading stocks under a dollar.

The second leading gapper is Mitq. This is at a dollar and 34 cents. The price uh, pre-market high was a dollar sixty and you can see it's already pulling back down. So this one's no good right now.

Brds. This one's also a dollar. 25 on the cheaper side and it's also coming back down. So these are ones that as I'm sitting down right now, they're not positioned, they're not, they're they're The price action is not supporting an entry.

these are not making nice ascending waves moving higher. They went up a little bit and then they pulled back. and maybe if I had been sitting down here at 5 00 a.m like or 8 am. whatever.

I could have taken that trade, but I I missed it. So whatever. You know, if I was sitting down earlier earlier, maybe I would have taken it. but but not in this case.

Auvi. This one is a contender if it can get back above this level, but it's still on the cheaper side. Husn, this one's at a dollar and 33. uh, actually no sorry, it's 133 million share float.

This one's a little bit below the 200 moving average. Doesn't have a lot of volume, so you know it's hard to say, but it could be interesting if more volume comes in. Not really sure. Ppsi this one 3.84 cents.

Uh, it does have news, but it has struggled a little bit here. It's been in a bit of a longer period of consolidation, so the whole idea for a pre-market trading strategy is to try to find stocks that are moving quickly and that are the leading gainers. And so we've effectively done that. Using these scanners right here to search the top, you know, the top gappers, the top gainers in the entire market.

And so I've already looked at the top five. Now I can tell you that generally the days I do the best, it's when I'm trading the second, third, or maybe fourth leading gapper, they're moving up. They're super obvious, and traders sort of all across the market are watching them. And and this is important because what we as as as day traders, we're trading technical analysis.

We're trading price action. We're trading chart patterns. And the reason these chart patterns work so well is because it's a language that is understood by so many traders all around the world. There are very clear buy and sell signals inside these candlestick charts.

You may not recognize them yet you may not be able to read them because you're still learning the language, but they're there and so you're better off trading a stock that has really high relative volume because the stock is already up as a leading gapper. It's got news. It's got a price that is very attractive to retail traders like ourselves. If you are focusing on that type of stock, the patterns will resolve more.

predictably. If you try focusing on a stock that has very light volume, let's see this stock view. For instance, Vue has 6 000 shares of volume is a 200 million share float. This price action is very difficult.

There's really not much going on now. Maybe it has news. And you know, if an Algo jumped on it, it could start moving. but it's not looking like that's the case right now.

So this would be the wrong type of stock to trade. You want to make sure you're focusing on the right type of stocks? That's a big component to the pre-market trading strategy. So I focus on the right type of stocks to trade. and then my goal is to get in on ultimately the first pullback.

Now sometimes I will buy a micro pull back and Steph, uh, who may be listening in? She may have a link to the micro Pullback Pdf. Micro Pullback Pdf. I'll just ask a question. I don't know if she has the link to that ready.

if she doesn't have it ready right now at this moment. then. oh, she says she does. So I'm going to give you the link to the micro pullback Pdf and then you guys can download that if you'd like.

Um, Warrior members, All Access members. You guys already have access to the micro pullback strategy and it's video course. This is a small Pdf that we'll make available for people that are streaming this on on Youtube. But and and thanks, Uh, Calvin says he's got it saved on his desktop, so that's good.

and it is helpful to sort of print these things out and have them on your computer or really close by. So you can be referring to it because the whole idea with the micro pullback in the pre-market day trading strategy is that you see something moving up and you buy that first dip. So you know, whatever. Ppsi, something like that.

Uh, you can see back here this is the type of stock that, well the one minute's not super clean, but you can see how you got this pop-up right here and then this pullback. so this would be the first pullback. The problem of course with this one is that the volume is sort of light at this time and it didn't end up giving us like a really nice, um, a really nice squeeze of continuation. And I think that's just because it was a bit on the earlier side we're generally seeing volume is increasing as we get closer to the open, which has sort of always been the case.

It just used to be that traders really didn't trade pre-market at all. Waited until 9 30 and now it's like why wait you can? You can hit the buy button pre-market so if something is moving, why would I wait and so as a result people don't wait. So uh, for those tuning in on Youtube I just posted that link and I'll pin it to the top of the comments. So you can download the micro pullback strategy Pdf and I encourage you to do that.

Let's see Um and by the way, those tuning in who came in maybe a little late to this live broadcast. It's about uh, 9 20 and we're talking about pre-market day trading strategies and I said for every thumbs up we get to this broadcast. I'll donate a dollar to charity so thank you guys for hitting the thumbs up and and helping to donate some money to charity. Okay, so what I'm going to do now is I'm going to pull up an example of the first pullback on a chart and then what we're going to do at the end is we're going to kind of put the pieces together from stock selection to the entry and the exit.

All right. So let's see, I'm just searching. This slide deck that I have for our members is like a thousand slides long, so it's a little slow to search. Okay, so all right so we're looking to intraday chart patterns and and this right here.

So this represents here this first pullback. So you've got a strong stock moving higher and this is our first pullback right there. This is our second pullback and these patterns occur pre-market just as often as they do during regular trading hours. I mean, we see these patterns again and again and again.

So this is not a micro pullback. this is more of a standard pullback. but you've got that pullback and then you look for that move higher. Now let's look at Ppsi for one second.

So Ppsi uh, this one has a pivot here. at about two 397 you can see this area see some volume coming in, so I'll take a quick trade there at 394 for the break of four and then let's look to add at 405 and see if we get a move so added there 408 and then I'll take a little off the table. So this is I'm holding now 6 000 shares and taking a little more off the table at 15 into that profit area. So I waited for the volume to come in and then once the volume came in, I added on this at about 397 average 398's my average now and that gave uh, you know, a decent profit.

It's not a home run by any means, but you know it is a small winner. So holding now a thousand shares took some profit off as it broke through that descending resistance line. So what was the setup there? The setup on this, uh was actually a break through the half dollar whole dollar. so I can.

let's see. so it wasn't a picture-perfect bull flag. it was a half dollar whole dollar. So I'll pull up this example here.

Um, so let's see. So notice how we have this long period of resistance here. At 503, these flat top breakouts often correspond right at these levels. All right.

So 597 This one. You had this long period here where it had been consolidating underneath four which was, um, from like, right through here. So once it came up and once we had volume right there, that for me was a quick opportunity to jump in. Now we mark the high of this candle.

we'll see whether we whether or not we get a micro pullback. The high there is 419 so new order would go at 4 20. this is the dip right here and then the first candle to make a new high would be back through 420. Ppsi is our fourth leading gapper right now, gapping up 26.

It does have news, so that's fine. We've got our 200 moving average on the daily at 5 31. so that you can tell how there's a number of levels of technical analysis that you have to do when you're trading pre-market Now let me grab one other thing here for you. Um, so you know that's I.

I'm glad that we ended up finding a trade here. I was hoping that there might be an opportunity for a trade pre-market and I did end up um, getting one there. So that's great. This is, uh, page one of the micro pullback, so this is what I encourage you guys to download and you could have actually taken this micro pullback right here.

I didn't take that one, but you could have taken that from 07 back up to 15.. The reason I hesitated on it was because it did retrace a little bit more than I like hitting a high of 419 and then pulling back down to 402.. So what I usually do is I take profit on the the first break and then I let it pull back. I'll hold my smaller position as I'm still holding now and then if we get a break back through the high, I can add back.

So we're coming back and we're actually retesting this descending resistance line. It was descending resistance. Now let's see if that turns and becomes support. It may be that it'll become support in this area.

Okay, so back to kind of the top here. We've got five minutes to the opening bell, so this ended up being a sort of little last minute before the opening belt pre-market trade and I'll take the rest off there for two thousand dollars of total profit. So the idea with trading pre-market is to really try to hone in on these top four or five gainers each day. You want to look at the top four or five gainers each day and you want to see, is this a stock that is holding strong? Is this a stock that, with its pre-market range, is at the top of that range? This is certainly hanging out at the very top of the pre-market range, although it's about a double top at 419..

if we compare that to Idra, Idra has pulled back quite a bit. So that's not the top of the range Brds. This one is not the top of the range either. It's pulled back quite a bit.

so Ppsi is actually the strongest of these three. Oh, there's Mitq, but that one is. um, that one's the same. It's pulled back a little bit.

so Ppsi is actually the strongest of the top four. Gappers. The daily charts not picture perfect because it's below the 200 moving average and this is where to be most, uh, successful trading pre-market You've got to be layering on all of this information. You've got to understand technical analysis.

You have to understand your charts. You have to be able to. You have to know how to read stock charts For day trading. You have to understand the candlestick charts.

You have to understand descending resistance, ascending resistance, ascending, and descending support. You've got to understand the pivots at half dollars in whole dollars, the pre-market high, the double top. Then you want to layer on the daily chart. Do you understand the position to the 20? the position to the 200? Then you have to ask yourself, Well, what is the quality of this stock? What is the float of the stock? What is the price? You know what is the quality of the market right now for active traders, And as you start to layer on all of this, you're able to form a bias and that thesis is where you take the trade.

That's where you say I can justify taking the risk on this trade because it's a risk to reward ratio. So you know, for Ppsi, I was willing to step up to the plate on that one. That's one trade pre-market It's a quick entry, quick exit. It was based on it being, uh, at that time, the strongest of the pre-market charts that I all had that I had watching.

I have multiple monitors and so with these multiple monitors, what am I doing? I'm watching each one of the leading gappers. That way, if a setup starts to form, I'm seeing it in real time and I can jump in and I can capitalize on it. Now as always, you don't have to trade alone. The whole thing that's so nice about this community, but any community I suppose, is that you can have other traders to bounce ideas off of and you can get a sense of what other people are looking at.

Do other people like Ppsi are there people thinking that this is the right type of stock to trade or not? And so that helps you develop a little bit more confidence versus trading completely in isolation by yourself? Which you know. Unfortunately, a lot of traders do as they're getting started. Um, I do encourage you to download the micro pullback uh, Pdf lesson as we're sitting right here with two and a half minutes the opening bell. There are times where I'll be trading right into the open.

On this one, the levels that I would watch would be the breakthrough 419. We do have the 531 daily resistance level, but it's a little ways away so we still have some room up to that level. All right. So again, to reiterate the pre-market day trading strategy.

It starts with scanners looking for five percent up. Gappers focus on top three to five percentage gainers. now sometimes one of them will be a buy out and then you'll just exclude that and focus on the next one. And then, um, price action leads the way.

So this is Um aka technical Oops technical analysis. So that's micro pullback as entry. Bull flag, flat top. Sometimes you'll get a an Abcd setup or something like that so it's not going to happen overnight.

For anyone. learning to trade pre-market and developing a pre-market trading strategy takes time and what I would encourage you to do is look at someone else who's trading pre-market successfully and try to figure out how they're doing it and see if you can adopt a similar strategy for yourself. If you can't then the question is okay. that strategy works for him.

It doesn't work for me. Why am I using the wrong tools? Uh, am I too slow? Am I Do I not understand technical analysis well enough? There's some disconnect. You've got to try to figure that out and see if you can bridge the gap. If you can't then you may have to find a different strategy.

But you know, trying to start from nothing is a difficult way to start trading. It makes a lot more sense to start with a strategy that someone is trading every single day and has proven is profitable. So with that, we've got about 15 seconds. the opening bell.

One trade pre-market A small winner. Not bad. It gets me in the green for the day so we'll continue to look for more opportunities. Appreciate you guys being here for this.

um, micro Or for this. Um, I guess it's a micro class. A mini class. Uh, on trading.

Uh, pre-market So there's the opening bell, so now you can trade freely as you'd like and watching, um, the scanners. We keep an eye on seeing what's moving. We've noticed this trend at the Open where we'll have this flush. Sometimes it turns into a red to green move, but not always Glbe.

This is a gap down reversal which is a riskier setup in general. I'm not, I'm not as big of a fan of of that type of setup, although sometimes you can get opportunities, but the float is higher so Ppsi is still on watch and as the day moves forward, we'll just keep watching these scanners and those are going to tell us what is moving, what is strong. So thank you guys for being tuned in. Thank you for hitting the thumbs up! Those thumbs up are going as charitable donations and so thank you for that.

I really appreciate it. I hope you download the micro pullback Pdf if you want to learn a little bit more about my strategy and I'm going to keep broadcasting here for Warrior All Access members and we'll see if we can find some more trades and maybe get myself closer to my daily goal. Those who want to keep learning, you can check out another episode I'll put. Let's see, I'll put one right up here for the simplest day trading strategy.

You can check that out and I'll put another one right here for timing entries and exits. So check those two videos out. if you want to learn a little bit more, you.