Let’s face it – trading is a tough business. However, if successful it is the most satisfying feeling you’ll ever have.
But since there are no guarantees and we cannot clearly see future outcomes, there is always an unsettling feeling in our gut. We want to win, but even more we want not to lose. Trading is a game that should take place ‘between the lines,’ and in most cases that happens. However, our minds and psychology are often steered by trading during after hours or the pre-market. During these times we find ourselves fretting over moves that are not only out of our control be very temporary.
AFTER HOURS
Do you find yourself stressing outside of real time hours? When you see a stock move post close or in the pre-market does it raise your blood pressure? Are you feeling ‘ripped off’ if you have options and can’t trade them? I can say this much – pay less attention to what is happening during this time and focus on the real time hours. I have seen more bogus activity during these lighter sessions than you can imagine. While the indication may be ‘good’ it is often ‘not good,’ meaning the true action will hit during the trading day.
How often have I seen a stock like Priceline go down during the after hours session only to open higher the next morning. Is it really necessary to be active in a rather illiquid market? Of course not. So, let’s pay little attention to the market for manipulators (remember, fewer market makers and you can’t trade options during these sessions) and more focus on the regular session, which counts most!
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Bob Lang has been managing private options trading accounts for clients since 2004 and providing subscribers with guidance on trading options for income at Explosive Options since 2011. Connect with Bob Lang on: Twitter, Facebook, Google+, LinkedIn.
