How to make a Premarket Watchlist? Create a Trading Plan for Day Trading Beginners (Part 1)

I'm going to walk you through step by step how I creates my pre market watch list every single warning and the five steps are warning there's no Lambos here no getting rich quick and there's no day trading secrets that's gonna cost you $5,000 I know you must be really disappointed now I guess I'll have to actually give you real know both valuable information on day trading if you're a longtime viewer of this channel you know I always preach that you plan your trades and trade your plan I found that in trading while the most important aspect is focus it's way too easy to get sidetracked by chatroom alerts what people are saying on Twitter or stuck to it or even an intraday alerts from your own momentum scanners and unfortunately that's the biggest reason most beginner traders blow up their accounts will slowly bleed it out with small paper cuts I'm saying that because I understand I've done exactly just that myself nowadays I spent about two hours before the market open to prepare for my pre market watchlist but don't worry this video isn't gonna be two hours I have condensed my watch this planning process into five simple steps note that I said simple but not easy trading is never easy but you can increase your success rates greatly by having a plan and all it's costing you it's a simple tap on the like button so the first step to creating a watchlist is scanning for cappers pre market gap rates our stocks have gapped up or gapped down with a dramatic percentage overnight technically it could be due to earnings news clinical trials or other deals and agreements and the reason it's so important to look for cappers is that there's likely to be an immediate reaction to the stock in the first two hours and as they traders that's exactly what we're looking for we're looking for momentum volume and volatility there are several ways I used to scan for pre market Gabor's the first one is with Ben Zynga Pro I've already made a video showing you my settings how I scan for both a small cabin large cap cappers using the movers module besides Ben Zynga I also used trade ideas for the same purpose sometimes both of these scanners will give me a list of similar results but we going over white shoes to use both of these scanners specifically in the next few steps a third resource I use the scam for pre market Gabor's is briefing this is a great resource for people who trade mid cab and large cap stocks briefing is a web-based service that provides you live market commentary and analysis this tool was extremely helpful during the summer months when the small cap penny stocks are pretty slow but the low floats have been really hot lately so I haven't used briefing as much the fourth resource I used to scan for gap errs is with my execution platform that's trader they provides you a list of all the pre market gainers every single morning they call this the top list this feature comes with a platform subscription now the fifth way to scan for these scammers is finally free to use but I personally don't use this feature anymore which is the thinkorswim pre market scanner this tool isn't that ideal because the scanner takes a long time to refresh and it's not as fast as all the other tools I mentioned earlier and as a result I used to miss all sorts of pre market movers because the scanner was delayed but I mean it's free after all and it's a great way for beginner traders who get started I go over how to say that the scanner mi think will swim tutorial video now it doesn't really matter how you find your cappers either with the five resources I mentioned earlier or you got it from a subscription email or chat room service what's more important is that you do your own research on the news catalyst which is the second step to creating a pre market watchlist because not all Gabor's are created equal some news headlines were generally more hype and follow-through where others are just blatant pumps but the key is knowing that there is an indeed a published news headline and reliable sources like Ben Zynga Yahoo Finance or fenves and why is a published news headline so important if you remember these penny stocks in recent years i dr ys l fi n and d GOI those stocks were actually halted with a t12 Holt they're trading on these stocks are put on hold by the Nasdaq Stock Exchange for several days weeks or even months because you haven't smashed the like button as always these videos take me 10 to 12 hours to make that's the time I could have spent driving my lambo chilling on the beach and making millions on the toilet so if you wouldn't mind taking one extra second to tap the like button I really appreciate you my friends and the reason these stocks I just mentioned was put on a tee to uphold it's because the NASDAQ exchange is requiring more information from these companies usually that's after these low floats penny stocks are making 300% 500% or even sometimes a thousand percent moves with no valid news so the intention of these t12 holds by the Nasdaq is to protect investors from these companies are potentially violating the federal securities laws whether that's actually true or not we're not gonna get into that today and that's why knowing that there's a published news headline is so important if you were sucking a tea to uphold your funds could be tied up for weeks days or even months this is not the same as a t5 volatility holds that usually lasts for less than 10 minutes and imagine if you were using margin buying power I have a friend who assured Elfen around $24 before the halt and he had to keep on wiring money to the broker throughout the next few weeks because he was short too big of a position and yeah even though lfi own um hosted a $7 like six weeks later and he made a killing that emotional stress over two months was not worth it if you want to learn more about all these different nasdaq trading holds i'll leave a link for you to read more below okay so now we've established the importance of news it doesn't mean that you should just go buy every single gapper with news blindly and make quick easy money if you're following chatroom alerts to buy high of the day break out of every single stock that that's a headline well I have some breaking news for you you see why I did there you might get dumped on if you do not analyze the news so I used three of the tools I mentioned earlier for news research they are Fingaz spending GoPro and briefing using film this is perfectly fine to get started but I you spend zynga because they are lightning fast with their news updates and they provide me with the most complete information regarding holt above average treating volume with no delay and next we have briefing which is my news resource for mint cap and large cap stocks this is where I can check the stocks earnings upgrades downgrades and other major news resources summarized briefly so it saves me so much time just like Ben Zynga so after collecting all the news headlines we have to analyze it generally speaking a categorized all the PR into three different categories now the true significance of each news headline will obviously be different for each particular stock and of course whether the stock is a smoke a penny stock or a mid cap and large cap stock that's a real company will also be a factor as well the first category is positive catalyst this could be potential deals good earnings positive drug trials potential buyout or global trade news that's favoring a specific sector for example s o RL was a Gappa pre market from a news of a potential merger agreement the conversion price was going to be four dollars and seventy two cents per each common stock which is important when you're trading merger agreement news yes the catalyst is over a positive for the company but unless you know the potential transaction price and whether that price is significantly higher than the previous day closed price of the stock that merger news is not going to move the second category is obviously going to be negative catalyst this could be a fallout of a deal global economic crisis where the stock is issuing an offering we're getting D listed by the Nasdaq which we have seen happening a lot recently with a smoke a penny stocks for example SLD be a small cap biotechs drug company had one of their drugs put on hold by the FDA as a result the stock gapped down overnight on November 12th and continued selling off for the rest of the trading day because the news was extremely bearish for the stock and for this biotech company that's relying on drugs getting approved for them to sell in order to generate revenue now the third category of news is fluff news they're actually disguised as positive this is extremely important to recognize when you're trading small cap penny stocks because a lot of these companies use really optimistic and positive wording in their PR in order to pump the share prices up so there are a few key words that you can use to identify that this PR could potentially just be fluff and of course this is a general guide only each stock is going to be different some really common pump keywords are possible deal engagement optimistic outlook in the talks and potential partnership anything along those meanings in the gray area suggesting that something could happen but there also might not happen it's kind of like when you buy a DVD that promises you to potentially make a million dollars but you might just have to lose a hundred thousand dollars to get there technically they are not lying because your potential is only as big as your dreams just like technically it could start raining Lamborghinis tomorrow theoretically that's possible sometimes these news are even a few days to a few weeks old and they just recycled it and repackaged it as brand new just like while my favorite pump sucks C a and F here theoretically speaking in a perfect world positive catalyst means that the stock should go higher right and vice versa if the catalyst is negative that means the stock should dump but unfortunately nothing is 100% guaranteed in day trading we have seen stocks with blatant pump news running 200% 300% and also stocks with a may earnings selling off the entire gap stock Gabor's with news doesn't always guarantee the most obvious direction to the upside or downside we also need to look at the key statistics of a stock whether the stock was a recent reverse split how its setting up technically on a daily chart and using past screen time and experience to make educated plans and that's the importance of the next three steps in part two of this how to create a pre market watch this video will be putting all five steps together I know it sounds hard and I know it doesn't sound like you can make a million dollars in six months creating a trading plan can be simplified into a few steps but never easy but again if it's too hard and too much work then maybe falling chatroom alerts easier this video really took me a long time to make if you want to see a part two to this step-by-step guide into making a detailed pre market watchlist let me know in the comments down below and don't forget to always destroy the like button thank you guys so much for watching as always and I'll see you guys next week

Channel: Humbled Trader

Views: 374,085

Keywords: how to day trade penny stocks for beginners, day trading small account, penny stocks, penny stocks for beginners, day trading for beginners 2019, warrior trading, ricky gutierrez, steven dux, timothy sykes, how to find hot stocks, $EDNT STOCK, $CLVS STOCK, $ASLN STOCK, $DRIO stock, how to find stocks to trade, how to scan for stocks to trade, how to build a trading watchlist, how to make a premarket watchlist, how to create a trading plan, day trading watchlist

Id: t0I-hQgYmzw

Length: 12min 19sec (739 seconds)

Published: Wed Dec 04 2019