Premarket Preparation
“Give me 6 hours to chop down a tree, and I will spend the first 4 hours sharpening up the axe”
Trade The Pool classes of premarket preparation are demonstrations of advanced trading concepts on how to prepare day traders for the trading day ahead.
Picking The Best Stock to Trade Intraday
Scan the right way to Get Better Results:
In today’s lesson, we covered the 2nd principle when it comes to finding the right stock for day trading.
In the video, Michael explains why it’s important to use scanners, how to use the built-in scanner in the platform, and how to build your own to get the selected few for each trading day
In this video, Michael continues the session on how to prepare for every single trading day. In the previous session, we talked about how to analyze the market, including the S&P, the Nasdaq, the Dow Jones, and the VIX. In this session, he focuses on another important aspect of market preparation – scanners.
Scanners are a vital tool for traders as they help to identify stocks that are moving up or down with significant momentum and volume. Traders are always on the lookout for stocks that are volatile and have a lot of liquidity, as this makes it easier to buy and sell shares. The TTP platform offers a scanner that traders can use to analyze the market, but you can also use other platforms like TD Ameritrade or TradingView if you have a paid account.
Before using a scanner, it’s important to understand what you’re looking for. Traders are interested in stocks that are moving up or down with a lot of momentum and volume, rather than flat-lining. It’s also important to find stocks that are volatile and have a lot of liquidity so that you can buy and sell shares easily.
To get started with scanners, you can look for the top gainers and top losers in the market. This will show you the stocks that are moving the most, even if they don’t necessarily have a lot of volume. Another option is to use a pre-market mover scanner, which will show you the stocks that are moving strongly before the market opens.
For example, if you’re using the TTP platform, you can click on a stock that’s showing strong momentum in the pre-market, such as ADGI. By clicking on the stock, you will be able to see its pre-market chart, which will show you how the stock is performing before the market opens. This information is useful because it can give you an idea of the direction the stock is likely to move in once the market opens.
In addition to using scanners, it’s also important to keep an eye on the news. This is because news events can have a major impact on the stock market and individual stocks.
On The Next Pre-Market Session
In the next lesson – “Hunting the best stocks“, we will cover this topic in more detail, but for now, it’s important to understand the importance of staying informed about what’s happening in the market.
In conclusion
Scanners are a vital tool for traders who are preparing for the market each day. By using scanners, you can identify stocks that are moving up or down with momentum and volume, and get a sense of the direction the stock is likely to move in. By combining this information with news events, you can make informed trading decisions and increase your chances of success in the market.
To learn more about this, watch our Pre Market Prep category on our blog!
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