Successfully Navigating in the Pre-Market and Buying a Soaring Stock

 

There will be many upcoming posts about my challenge for myself this year – starting with a very very small account, and having to deal with (or maybe not?), the PDT rules. There are ways around it, I’m employing 2 of those ways, but the trade sizes then must be kept extremely small. Doing a small account is something I’ve never done over my trading career, so there has been plenty to learn, and I’m really enjoying the challenge and the experience. All of this was discussed in the conference call recently. The way I’ve set this up and approached this, I am avoiding the PDT rules, small position sizing, but I do a lot of trades.

PREPARATION and RTM:

My advice to you guys continues inre to learning what readiness to move is and how to develop the skill set to be able to implement this. RTM takes your trading performance to levels which you did not believe you could attain. So the question is – are you going to be the one out of a very small minority of people who spends the time and does the hard work involved in learning this stuff? Or are you going to be like the vast majority of people in this business? – LAZY. I am giving these lessons for free FOR NOW. At some point, I will no longer be giving these lessons for free, or possibly at all.

MTFB had some news in the pre-market trading, it showed up on my scanner, and immediately skyrocketed. So like usual, first thing I did was quickly scanned the news, it looked pretty solid, and per usual, I looked at the daily chart, the 60, and the 5, and went to the SEC website to look at the filings. Everything appeared to be a go, even tho – or especially – because the daily and 60 were terrible. It was so bearish it was bullish, this happens a lot. And I wrote up my plan, detailed on the 60, chart 1. I studied the pre-market chart, and then wrote out my plan, it was VERY SPECIFIC, and it worked BEAUTIFULLY.

Chart 2 pre-market trading chart, cup/handle, 2.60 bko area highlighted. What did I say? – “I will buy bko of 2.60 if the big green volume shows up“, it showed up big time – RTM, and I bought 2.62, charts 2,3,4.

Chart 5, put in an offer to sell 1/2 at 2.89, wanted to take out 10%, that filled before the regular session. MTFB thad formed a BEAUTIFUL REACCUM AREA – RTM, as discussed on chart 6, so came in long 1/2 and sold the rest at 3.50 in the regular trading, chart 7.

Again, PREPARATION and RTM:

Was I fully prepared? ABSOLUTELY. In and out with 10% and then 35% – all in an hour – IS THAT READINESS TO MOVE? Sure is.

 

 

 

 


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About traderscott 1146 Articles
Trader Scott has been involved with markets for over twenty years. Initially he was an individual floor trader and member of the Midwest Stock Exchange, which then led to a much better opportunity at the Chicago Board Options Exchange. By his early 30’s, he had become very successful in markets, but a health situation caused him to back away from the grind of being a full time floor trader. During this time away from markets, Scott was completely focused on educating himself about true overall health and natural healing which remains a passion to this day. Scott returned to markets over fifteen years ago where he continues as an independent trader.

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