My 30-Minute Pre-Market Routine Before the Market Opens
Every morning, about 30 minutes before the market opens, I run through the same routine so I’m not just staring at my screen wondering what to do.
Here’s my pre-market checklist:
1. Check the market first
Before looking at individual stocks, I check the broader market because even a great setup can fail if the overall market is weak.
I usually pull up:
- SPY
- QQQ
- IWM
I’m looking to see if they’re all moving in the same direction. For example, if QQQ is red while the others are green, that could mean tech is weak, so I may avoid tech names that day.
2. Check the fear gauge
I also check the VIX.
If it’s under 15, the market is usually quite calm.
If it’s over 20, there’s more fear and volatility, so I may reduce my position size or be more cautious.
3. Look at the economic calendar
Next, I check the economic calendar.
I filter for:
- United States
- High-impact events only
I’m mainly looking for things like CPI, jobs reports, inflation data, Fed-related events, or anything else that could move the market.
If there’s a major report coming out, I avoid trading around that time because the market can reverse very quickly.
4. Check pre-market news and movers
Then I look at pre-market movers and market news.
I’m trying to figure out two things:
- Is there a bigger story that could set the tone for the whole market? For example, Fed news, oil, inflation, or macro headlines.
- Is anything on my watchlist being mentioned? Earnings, analyst upgrades, downgrades, guidance, or major company-specific news.
If a stock is moving a lot pre-market, I want to know whether there’s a real catalyst behind it or if it’s just random movement.
5. Narrow down my watchlist
Once I understand the broader market and the news, I narrow my watchlist down to two or three names.
Then I focus on the technicals and map out:
- Entry
- Stop loss
- Price target
Sometimes I’ll actively watch the chart. Other times, I’ll set price alerts and only come back if the stock reaches the level I’m interested in.
The biggest thing this routine helps me avoid is blindly buying just because the market looks green. Some days the market may close green overall, but still have a sharp selloff at the open. Doing pre-market prep helps me avoid getting caught in those moves without a plan.
Curious what everyone else checks before the open. What’s part of your pre-market routine?