Are you looking for some quick trades for some quick cash? If you are a short-term trader
you will want to check out this premarket checklist created for you by our
friends at Fierce Trading!
Fierce Trading specializes in short term trades and has partnered with us,
TradeSmart University, to bring our favorite traders some useful education and
resources. They have put together a premarket checklist used to help narrow
your watchlist and to help set up your trades before the stock market even opens.
This list is fantastic for keeping traders focused and efficient. One of the primary
goals of the list is to help you to plan out your trades and to have your best trade
setups in place before the market opens so that you are ready for (almost) anything.
What are some of the things you should look for? When looking at your favorite
companies to trade, you should be cautious of watching too many of them at once.
Check premarket activity on the stocks to see which ones are creating the
biggest buzz. Those will be the ones you will want to watch that particular day or week.
After you have seen which companies are creating premarket buzz, check with your
broker to see if the ones you are watching are going to be available to trade. Some
stocks can get tricky. If your broker is unsure if the stocks will be available, it’s probably
a better idea to keep your eyes on the more available and less complicated trades.
To be a successful short term trader, you MUST identify the stocks that have real supply
and demand behind them. When a stock bounces off of support and rapidly rises in price,
that’s a key indicator that it has a lot of demand and is a valuable stock to get in on quickly.
Also to be a successful short term stock market trader, it is a best practice to preplan two
to three of your best trade setups for the stocks you are watching before the market
opens. The reason for this is simple. This creates an If/Then scenario and gives you a plan
of action for multiple possibilities. This helps you to be ready for (almost) anything.
Are you interested in learning more?
Get your own copy of the premarket checklist from Fierce Trading below.
To learn more about working with this checklist and how to preplan some winning
trade setups, you will want to sign up for the upcoming series “Trade Setups for the Short-Term Trader!”