Click here to get the Trade Scalper (same signals as in video)
Typically, trading pre-market is too slow. Sitting in a trade for an hour waiting for action increases risk. As long as volatility exists, you should be okay to trade. Review your charts to see volatility associated with Asia and Europe, for example. In the video, you’ll see a number of Trade Scalper signals that occurred before the market “opened” at 9:30 a.m. EST. If the market moved during that time with decent volatility, feel free to trade.
Remember that we typically use the ATR indicator with a Period setting of 4 to gauge volatility. Recall that in a recent blog post, we recommended the avoidance of trading during the first 10 to 15 minutes after the market opens. This is especially true when scalping. As the goals of scalping are small wins, a minor fluctuation in price activity would easily hit your stop loss, nevermind a large move.
What happens when you take a trade (based on a long signal) and then receive a short signal? According to John Paul, with the Trade Scalper at least, you exit the long position and go short, following the latest signal/information from the indicator software.
In summary, trade pre-market is permissible when conditions are volatile enough. Such conditions may be present around the open of those exchanges or instruments/markets. However, be aware that the first 15 minutes or so may subject you to greater risk. Indeed, the first 15 minutes are a volatile time.
