ZRAN was trading up in the pre-market on last night's stellar earnings report. I entered long on a break of the pre-market high. I closed the position on the first signs of weakness because that's the type of trading day it was and because there's no need to be greedy when you're up 1.8 points.
Tuesday, April 25, 2006
Trade of the Day - ZRAN
ZRAN was trading up in the pre-market on last night's stellar earnings report. I entered long on a break of the pre-market high. I closed the position on the first signs of weakness because that's the type of trading day it was and because there's no need to be greedy when you're up 1.8 points.
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6 comments:
AMSG up in AH. Earnings reported today.
Thanks Brian. ITRI too, on a 10 cent beat, but both are thinly traded. We'll see how they trade tomorrow in the pre-market.
Jamie, do you let a certain amount of time (i.e. 30 minutes) elapse in the pre-market before buying a b/o to new highs? Are your stops any different in the pre-market vs. the regular market hours?
Thanks for the time...I know you've been busy - don't mean to be a pest with all the questions lately.
Regards,
CM
Hi Chris,
Because of my strict money management rules, I rarely trade in the pre/after market and when I do, I look for low risk entries after the wild price spikes have taken place. I apply the same low risk entry and stops as my regular trading. Also, when trading in off hours, liquidity is very important, so I usually stick with the large cap names.
Hope this is helpful.
Thanks for the follow-up, Jamie, I think I was missing a step there. Just for clarification, when you talk about buying above the pre-market high, that purchase is typically taking place during the regular hours. (I believe you touched upon this topic earlier this month.) Correct? Good luck in the a.m.
That's correct Chris. Often times, in the 5 minutes before the market opens, prices get shaken out. If you look at the ZRAN chart in the Trade of the day post, you will see a long red bar, two bars before my entry point. Most of that selling took place between 9:25 and 9:30. My entry on ZRAN was around 9:45 as soon as it took out the pre-market high set around 8:00 and marked by the blue line.
Good trading to you too!
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