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Summary of pre-market concept stocks strategy.

After playing concept stocks before the market for a while, I have summarized some experiences and lessons for everyone's reference and discussion.
The concept of pre-market monster stocks refers to the stocks at the top of the Featured Lists with the highest pre-market gains. This type of stock often has a very good increase before the market opens, allowing you to lock in profits and exit before the market opens, which is very suitable for Asian & Oceanian babies who need to sleep at night.
However, there is a very high risk in grabbing the pre-market list, because the stocks that can be grabbed generally start with a 30% increase, and some are only discovered when they have increased by 50%-60%. If they do not continue to rise after entering the market, the extent of the retracement alone can be very uncomfortable for participants.
Therefore, in the selection of stocks and the timing of intervention, it really tests the stock pickers.
First is the investment advice.Because the risk of catching pre-market monster stocks is very high, I personally recommend focusing on buying stocks that can be held for the long term. Only allocate a small amount of capital to participate, so that if you lose, it won't feel too bad, but if you win, it will be happy.
Next is stock selection.Basically, there will be a theme direction for speculation almost every day, such as the previous quantum computers, AI, etc. Of course, there will also be some individual stocks that suddenly surge, such as LITM, NITO, etc. These stocks basically show up in the pre-market Featured Lists in a short period of time, so there is no need to worry about missing out without advance deployment. (Special note: Avoid the pharmaceutical topics that surge before the market opens, as this type of theme is also prone to trap people.)
Next is the timing of entry.Friends who trade stocks frequently should be very familiar with the correctness of the timing of entry, which directly determines how much money is made. Sometimes it also determines whether you make a profit or a loss, so the timing of entry is crucial. It is not recommended to rush into buying a particular stock as soon as the market opens at 5 o'clock, because at this time it is not very clear who the direction of capital speculation is. Based on recent operational experience, when the pre-market trading starts around ten minutes after five o'clock, you can generally understand the focus of today's speculation through grasping the overall situation and collecting information. If all else fails, just choose one of the top three stocks on the list, the strong will remain strong.
After choosing the right direction, you are about to start buying, this is a veryrecommendation for everyone to use pre-market intraday charts for specific operations. Generally speaking, try to choose stocks whose prices are above the intraday line for purchase, and the timing of purchase is around the intraday line. Generally, stocks that are about to surge will first be pulled down by funds to test the intraday line, which is the best time for us retail investors to buy.
Summary of pre-market concept stocks strategy.
(This is akin to the operation on Rime, but actually, if seen early, the opportunity for retracing the time-sharing line will be even better.)
After buying, because it is a short-term speculative stock,it is necessary to determine the selling opportunity as soon as possible.Here are a few methods to introduce to everyone:
1. Set the profit-taking point.Set to earn X% per day, regardless of how high it rises afterwards;
2. Anchor the selling price based on the previous high point.Since we bought in during the pullback on the intraday chart, we need to pay attention to the highest point within the day, then observe if the new round of highs can break through. If it breaks through, continue to hold until the resistance level, if it fails to break through 2-3 times, exit quickly.
3. Sell Price MethodI earn X amount in a day (with a relatively low target), as long as I make enough, I leave, which is a bit similar to 1, not elaborating further.
Because we are speculating on hot stocks, it is very likely to buy the wrong stock, for example, getting stuck in stagnation after buying. At this time, we mustobserve the intraday chart more. If the high points of the stocks we purchased are lower each time compared to the previous one, this is an absolute danger signal, indicating that it is unlikely for this stock to perform well today. It may indicate funds are rapidly leaving. At this point, the only thing we need to do is to leave quickly!
Remember one thing when speculating on such stocks,We are just short-term speculators, making a profit and leaving, without researching the fundamentals of any stock. So, at critical moments, we must be decisive, take profits when things are going well, and quickly exit when we make a mistake.Never turn short-term speculation into long-term shareholders, because most of the speculation we do is junk stocks, which have no holding value at all, and it takes too long, tying up capital and disrupting the rhythm.
Some other points to note:
Actually, it's similar to speculating in normal stocks, first you need toAvoid greed!!I have made profits of over 50% in the short term with LITM and NITO before, but wanting more led to huge losses, which is a common problem for many retail investors.
Pay less attention to the comment section's momentum, have your own goals.Many comments in the comment section are often wishful thinking, like hoping the stock price reaches XX, never let it affect and disrupt your own rhythm.
Maintain a positive attitude.It is normal for such stocks to experience large fluctuations. Maintaining a good mindset is crucial. As the saying goes, as long as you have not left the table, there is still a chance.
Lastly, there is one more crucial thing, absolutely do not touch Chinese concept small cap stocks, or fake foreign capital with Chinese shareholders, it's full of traps. (Don't ask me how I know)
Disclaimer: Community is offered by Moomoo Technologies Inc. and is for educational purposes only. Read more
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