News Americas, NEW YORK, NY, Mon. Sept. 16, 2019: At first, “Premarket movers” sounds like a name you’d give to a professional moving company. However, the term refers to something in the stock market.

If you’ve ever traded in stocks and securities before, you’ll know that the exchange generally opens and closes at the same time every day. While the stock market is open, people can buy and sell securities as much as they want. However, there are also trading options available when the market closes, and before the opening bell rings too.

Premarket movers refer to the stocks in the market that are moving after the market has officially closed for the day, and before it opens again the morning after. Sometimes, these movements happen more significantly in the early hours of the morning between 4:00 am and 9:30 am. Other times, people will notice pre-market movers just after the after-hours market closes.

Why Do Traders Look at Premarket Movers?

The premarket offers a unique opportunity to people in the stock trading environment. It’s a chance to get ahead of the curve and sell or buy your stocks before the opening bell rings the next day. This can be an excellent thing for people who know something important about the business or entity that they’re investing in. However, the premarket also lacks liquidity, which makes it very difficult to trade anything in volume. That’s why the majority of people interested in the premarket don’t actively trade during this time – they just look at the premarket movers.

Looking at what’s happening in trades before the market opens can provide you with a unique insight into what might happen in the day ahead. It’s an opportunity to get an inside scoop on how people are initially responding to things like economic and business news in the marketplace. By paying attention to pre-market movers, you can create a detailed trading plan early in the morning that you’ll be able to use when the official market opens. However, it’s worth noting that in some cases, the activity of the premarket won’t always give you an accurate overview of what’s going to happen the next day. The prices of stocks and securities can change rapidly when the market officially opens.

Staying Ahead of the Curve

While watching the premarket doesn’t guarantee that you’ll be able to instantly see the stocks and securities with the best chances of long-term growth, it does improve your ability to get a full overview of the market before you begin trading. Since information is crucial to successful trading, the more data you can gather from things like afterhours trading insights and premarket movers, the more educated you’ll be when the time comes to spend your money.

As you spend more time in the stock market, you might even discover that you become more efficient at figuring out which premarket stocks are going to generate the best return on investment for your unique portfolio. After all, practice makes perfect, even when you’re simply evaluating and responding to other people’s actions on the stock market.