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irby,
I agree with you. Pre-market buying is super-risky as things change very quickly just before and just after the market opens. I have done it several times and I believe I have mostly regretted doing so.
If you feel very strongly that a stock will run sharply from the open, and you really want to be in the trade, maybe do it. However, if the stock has already gapped up 10%-20%, I would wait for the pullback at the open, then buy in lower, or pass on the trade altogether.
Also, as you mentioned, selling pre-market is the best way to lock in quick profits on overnight positions, hopefully before profit-taking occurs at the open. Stocks running up strong at the end of the day, with a strong market, can be bought right before the close and held for a gap in the morning. Selling pre-market then is the safest, most conservative play.
So, I look at pre-market open trading mostly to exit trades and lock in profits.
Bill |
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