Pre-market trading is defined as the buying and selling in the share market before the regular trading session begins. It starts from 04:00 am in the morning and has its peak time between 08:00 am and 09:30 am and it closes at 09:30 am from when the regular trading session starts. Examining the main points, strategies and effectiveness of the market is usually the main purpose of professionals fulfilled in this session. Also, this market is used by stock aspirants who are looking for better options and stocks in the hope of earning gains.
This trading is for the ones who have the patience to tolerate the delays and volatility of the prices. If there are pros of trading in the pre-market sessions, they definitely come with some cons too. It has very limited stocks to choose from and sometimes, even the quotes for several stocks are unavailable. Contrary to this, some companies make various important proclamations in such sessions. People can take the maximum benefit of such news in a session where less competition and better opportunities are there. Generally, the stocks of big and well-established companies get their trades in the pre-market session very easily. The reason is that people trust these companies and there are very rare chances that their prices will show any sort of fluctuation.
Pre-market trading bears the real fruit for a trader who knows all the tricks and has the tact of dealing in this industry. A trader experienced in the field of stock market trading is the right person to deal in this session. One has to stay all through active and alert during such sessions because different brokers open at different times in the pre-market. Looking for the best can take some time because one account may open at 04:00 am and another at 08:00 am. Therefore, constantly looking for better options is the best way to earn profits in pre-market trading.
Mentioned below are some sample stocks that can be traded in the pre-market sessions
- MICRON TECHNOLOGY, INC. (NASDAQ: MU)
Dealing in the field of the semiconductor memory industry, this company was founded forty years back on 5 October 1978. It produces and markets all sorts of computer memory and computer data storage devices. Its headquarters are located in Boise, Idaho, United States. Sanjay Mehrotra is the current President and CEO of the company with David Zinsner as the Senior VP and CFO.
- MCCORMICK & COMPANY, INC. (NYSE: MKC)
This is a food and processing company which has two business units namely Consumer and Flavor Solutions. It deals in the production, marketing, and distribution of all kinds of spices, seasonings, condiments, etc. 130 years ago, in 1889, Willoughby M. McCormick laid the foundation of this company in Baltimore, Maryland, United States and is presently headquartered in Hunt Valley, Maryland, United States. Lawrence E. Kurzius (Chairman, President, and CEO) and Mike Smith (EVP and CFO) are the current key people of this company.