So, what are premarket movers? A pre market mover may in fact not be what you might have thought it was at first glance – it involves stocks on the stock markets, and the fluctuations that take place in them before the opening of the market for the day.
As a beginner, this may not make all the much sense to you. However, fear not! In this article, we will go through exactly what a pre market mover is, as well as details as to why it is worth having a look into and learning about!
What exactly, is a pre market mover then? A pre market mover, refers to a stock that is still moving in price after trading has closed for the trading day, and before it opens for the following trading day. As you have probably guessed, the “mover” part of the name refers to the stock, whilst the “pre market” is fairly obvious – the time before the market opens. These movements can take place as any time that exists between the market closing and opening, however, there are times that there are more movements in stocks than others. For example, a time that there may be more movements in stocks is when the stock prices can still be influenced by any trading that is taking places, such as during pre and post market trading hours. Pre and post market trading hours occur immediately before the stock market opens, and the latter immediately after the stock market closes.
Now that you have a rough idea of the pre market mover concept, let’s take a look at why it’s good to know exactly what pre-market movers are, and what they do! If you have a look at what movements in stocks are taking place prior to the commencement of the trading day, you may be able to place yourself at a considerable advantage over other traders. This logic is the same as that that you may apply to anything else that you do in your life. If you are up early to prepare for something, you will most likely be putting yourself at an advantage compared to those who are not up early and informing themselves further, as you will be more knowledgeable than them, and will be already in the correct mindset for starting whatever it is that you are preparing for. The same concept applies in the world of trading stocks and shares on the market. If you are up early and you have a look at those stocks and shares that are fluctuating, no matter what the direction, you will be more informed as to what is going on in the market and this will allow you the potential to make more informed predictions throughout the day based on this pre market information. If you see a stock that is changing in price (is a pre market mover) before the opening of the market, you will be in a position that you can research as to why this might be happening, and have look into the company whose stock it is – you will be entering the trading day already informed and at advantage. You might also have more of an idea as to the stocks that you would like to invest in on that day based on this prior knowledge.
By making sure that you are there and are examining the pre market movers early in the day, you will be able to generate a plan of trading for the approaching day that is based on fact and things that have actually been happening – as opposed to a less informed prediction or even best guess as is the case for many traders. In more fundamental terms, you are informed prior to most other traders what stocks are the ones to watch for the day – this can place you at an enormous advantage.
As you have probably already gathered, looking at pre market movers is an all-round advantageous practice – there really is no bad that can come from it. Another one from this long list of positives is the fact that they can give you more information with regard to the operations and movements that are taking place in the market as a whole. What is meant by this, is that they can provide you with information on hot stocks, stocks to watch, as well as up and coming company’s stocks to watch, and already large company’s that might be going through some significant changes that are affecting stock prices. Not only this, but you may be able to get information on general news surrounding the market, including what is affecting it at the present time. This information is paramount should you want to obtain information on what the major factors are that are affecting the movements within the stock market as a whole.
What do pre market movers involve, and what should you look for? So, what exactly signifies a stock that can be considered a pre-market mover? A pre-market mover could be a stock that has more considerable or more noticeable price differences than the day before, be these higher or lower prices. A pre-market mover also tends to be a stock that is being traded a lot, or a lot more than it normally might be – this additional trading could refer to trading that has taken place in the trading day prior to the one that is about to being, or trading that has taken place in after-market or pre-market trading hours. It’s all still trading, and it all has an effect on the prices of stocks!
Concluding, pre market movers are stocks that move whilst the market is closed. These movements can be as a result of trading that has taken place during post or pre-market trading hours, or indeed during both of these trading sessions. It is paramount that, should you wish to be at an advantage over other traders during the trading day, that you inform yourself of pre market movers and the effect that they are having on the stock market.