Premarket Trading

Pre-Market Trading: Monitor Leaders, Laggards, and Most Active Stocks

What is Pre-Market Trading?

Pre-market trading is a period before the regular market session when traders can buy and sell stocks. It typically begins at 4 am EST.

During pre-market trading, you can view:

• Futures information for the S&P 500, Nasdaq Composite, and Dow Jones Industrial Average
• Where the stock market will trade today based on Dow Jones Industrial Average, S&P 500, and Nasdaq-100 futures
• Implied open premarket values

Why is Pre-Market Trading Important?

Pre-market trading can give you a glimpse into how the stock market will perform during the regular session. It can also help you identify trading opportunities.

For example, if you see that a stock is trading significantly higher in pre-market trading, you may want to buy it when the regular session opens.

How to Monitor Pre-Market Trading

There are a number of ways to monitor pre-market trading.

• Financial news websites: Many financial news websites provide pre-market trading data. Some popular websites include CNBC, Bloomberg, and Yahoo! Finance.
• Stockbrokers: Most stockbrokers offer pre-market trading data to their clients. You can typically access this data through your online trading platform.
• Financial data providers: There are a number of financial data providers that offer pre-market trading data. Some popular providers include FactSet and Bloomberg.

Tips for Trading Pre-Market

If you are considering trading pre-market, there are a few things you should keep in mind.

• Pre-market trading is more volatile than regular market trading. This means that stock prices can move more quickly and unpredictably.
• The volume of trading is lower in pre-market trading. This means that it may be more difficult to buy or sell stocks at the price you want.
• Pre-market trading is not regulated by the SEC. This means that there is less oversight of pre-market trading than regular market trading.

Conclusion

Pre-market trading can be a valuable tool for traders. It can give you a glimpse into how the stock market will perform during the regular session and help you identify trading opportunities.

However, it is important to remember that pre-market trading is more volatile and less regulated than regular market trading. If you are considering trading pre-market, you should do so with caution.