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