Pre Market Stock Trading

Pre market stock trading is when you buy and/or sell stocks before the regular session of trading opens for the day.

Regular session hours are from 9:30 a.m. at the "opening bell" and continue until 4:30 p.m., Monday thru Friday (excluding holidays).

During certain holidays, the market may be closed altogether and in some instances, are open for a half day of trading.

Depending on which broker you use, pre market stock trading access can vary. I've seen some online brokers allow trading to begin at 7:00 a.m. and then others allow trading access to begin at 7:30 or 8:00 a.m.

Some allow access even earlier, but most allow trading to begin at 8:00 a.m. You'll have to check with your particular broker to see what hours they allow trading to begin.

Pre Market Stock Trading

Many accounts are set up by deafult to "NOT" route any new orders thru pre market trading. This means that it's up to you in most cases to make sure you have set this option up.

You'll have to accept an agreement stating that pre market and extended after hours trading carries a greater risk than during normal trading hours, which they do.

If you're thinking about trading before the normal trading session begins, you should be aware of how it is different. Since many people don't trade before 9:30 a.m., it means that liquidity is an issue. You don't want to get stuck buying a stock after it jumps only to reverse course with nobody else around.

Also, in many cases the other trades you'll see going thru can be from professionals. Do you want to trade against the professionals? If so, make sure you know what you're doing first!

You also should learn about order routing if you're going to trade pre market. Some exchanges are more active than others during these hours. You don't want to route an order to an exchange with nobody on the other end. It'll just sit there while other orders go through.

Even though there are extra precautions you must learn about trading in the early morning hours, there are many traders who do so for day trading and scalping. Just be careful out there and do some research first. Spend some time watching orders go throug one morning to see how things flow.

Here's an article I previously wrote about a a pre-market trading opportunity with an example and charts:




Return From "Pre Market Stock Trading" To "Stock Trading Strategies"


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