Are you looking to get a head start on your trades by taking advantage of the premarket hours? If you are using the thinkorswim platform, you're in luck. This article will guide you through the process of trading during the premarket hours on thinkorswim, helping you make informed decisions and potentially increase your profits.
The first step to trading premarket on thinkorswim is to ensure that your account is approved for this type of trading. You will need to apply for and be granted access to premarket and after-hours trading. To do this, log in to your thinkorswim account and navigate to the 'Client Services' tab. From there, you can submit a request for extended hours trading.
Trading in the premarket can be more volatile and risky compared to regular market hours. Prices can fluctuate significantly, and there may be lower liquidity, which can impact your ability to enter and exit trades at desired prices. It's essential to have a solid understanding of these risks before engaging in premarket trading.
Once you have been approved for premarket trading, placing a trade on thinkorswim during this time is similar to placing a trade during regular market hours. Simply select the stock you want to trade, choose the 'EXT' (extended hours) order type, and input your desired price and quantity. Make sure to review all the details before submitting your order.
After you have executed a trade during the premarket hours, it's crucial to monitor it closely. Keep an eye on the price action and any relevant news or market developments that could impact your trade. Having a clear exit strategy in place will help you manage your trades effectively.
Trading premarket on thinkorswim can provide you with unique opportunities to capitalize on market movements before the regular session begins. By following the steps outlined in this article and staying informed about the risks involved, you can enhance your trading strategy and potentially boost your profits. Remember to start small and gradually increase your position size as you gain more experience with premarket trading.