Hey traders,
Today I saw something that reminded me why it’s so important to have access to both the pre-market and post-market sessions.
There’s a lot of action that happens outside of regular trading hours, and you can miss out on some great opportunities if you’re not set up for it.
Let me give you an example.
Late last night, we saw some great news from Taiwan Semiconductor (TSM), and the stock shot up higher than I thought possible.
As a chip stock, it took all the other chip stocks up with it, including Nvidia (NVDA) — one of my favorite stocks to trade.
Now here’s the crazy part: In the pre-market session, Nvidia got up above $140. But by the time the regular markets opened, it had started dropping into the 130s — and it’s continued throughout the day.
That’s a big difference! If you had access to the pre-market session, you could’ve sold Nvidia at $140 and locked in those gains. But if you were waiting for the regular market to open, you’d be sitting at $137 and kicking yourself.
This is exactly why I say that good news can make a stock go up, but it can’t make it stay up.
So yeah, I think Nvidia will hit $140 again soon, but when you get a big pop like that, especially in the pre-market, that’s your sell signal. It’s an abnormal move higher, and that’s when you want to take your profits.
Bottom line: If you’re not set up for pre-market and post-market trading, you’re leaving money on the table.
Get yourself set up with a brokerage that allows you to trade outside of regular hours — it can make a huge difference in your results.
Happy Trading,
Jack Carter