Yesterday in premarket, the Breaking News Chat team alerted Inspira Technologies Oxy B.H.N. Ltd. (NASDAQ: IINN) an hour before the market opened.
The company announced it's developing a non-invasive blood sensor. The sensor can monitor a patient's condition without taking any blood.
In the morning SteadyTrade Team webinar, I said the stock checked a lot of the boxes in premarket:
- News
- Volume
- Low float
- Former runner
But once you've checked all the boxes, you have to know how to execute a successful trade.
Every trading plan might look a little different, depending on the patterns and strategies you like to trade. But one thing that can help all traders is having rules.
Here's how they could've helped you yesterday…
Trading Rules
Having trading rules gives you strict criteria and limits on what you can and can't do when in a trade.
But rules can also be flexible.
You'll have hard, strict rules like cutting losses quickly. But you'll also have rules that only apply to certain patterns. And rules that you can adjust depending on how well you're trading.
Here are two examples of how rules help if you traded IINN yesterday…
Buy In Pre, Sell In Pre
I'm sure you've heard this rule before ... It's one I like to use when trading in premarket. Because I treat premarket as a separate time from regular market hours.
Buying IINN after the news alert, or taking advantage of the chat pump spike in premarket were both decent trade opportunities.
The Breaking News Chat team alerted IINN when it was trading around $1.60. And they alerted the chat pump when it was around $2.
Both trade ideas would've given you the chance to catch 35 cents per share moves if you sold into the spikes.
But nine out of 10 chat pumps fail at the open. So what's my premarket trading rule?
If you buy in premarket, sell in premarket.
Then after the market opens, you can look for another pattern and potential entry.
Learn more about premarket trading here.
Wait For 9:45 a.m. Or Later
In Pre-Market Prep I said I have a hardcore 9:45 a.m. or later rule on IINN. Because as I mentioned above, 9 out of 10 chat pumps fail at the open.
If you waited until 9:45 a.m. or later for the dip and rip move over my $2.50 target entry, you stayed safe from the selloff after the quick spike.
You can see why rules are must-haves for every trader. Consider writing yours down based on what criteria or patterns you'll apply them to. Then write down which ones are your hard and fast rules that you stick to no matter what.
Then work every day to have the discipline to follow your rules.
Because there's no boss holding you accountable. It's you vs. you out there...
If you're struggling to develop the discipline to follow your rules, join a community of traders who have your back.
Have a great day everyone. I'll see you back here tomorrow.
Tim Bohen
Lead Trainer, StocksToTrade
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