Robinhood is a popular trading platform that has gained enormous popularity among young investors. Robinhood offers pre-market trading, which allows investors to trade stocks before the regular market session. Pre-market trading is a great opportunity for investors to take advantage of any overnight news or events that might affect the stock price. In this article, we will discuss how to sell in pre-market Robinhood.
What is Pre-Market Trading in Robinhood?
Pre-market trading is a session that takes place before the regular market session. Pre-market trading starts at 4:00 am EST and ends at 9:30 am EST. During this session, investors can buy and sell stocks, just like in the regular market session. However, the trading volume in the pre-market session is lower than the regular market session, which can lead to higher volatility.
Benefits of Pre-Market Trading in Robinhood
One of the biggest benefits of pre-market trading in Robinhood is the ability to take advantage of any news or events that might affect the stock price. For example, if a company releases its earnings report after the regular market session, investors can react to the news in the pre-market session. This allows investors to make trades before the regular market session, which can be advantageous. Another benefit of pre-market trading in Robinhood is the ability to avoid the rush of the regular market session. The regular market session can be chaotic, with millions of trades taking place at the same time. Pre-market trading is less busy, which can allow investors to make trades more efficiently.
Risks of Pre-Market Trading in Robinhood
One of the biggest risks of pre-market trading in Robinhood is the higher volatility. The trading volume in the pre-market session is lower than the regular market session, which can lead to higher volatility. This means that the stock price can fluctuate more rapidly than in the regular market session. This can lead to higher risk for investors. Another risk of pre-market trading in Robinhood is the lack of liquidity. The pre-market session has lower trading volume, which can make it difficult for investors to find buyers or sellers for their stocks. This can lead to wider bid-ask spreads, which can result in higher transaction costs.
How to Sell in Pre-Market Robinhood
To sell in pre-market Robinhood, investors need to follow these steps: 1. Log in to your Robinhood account. 2. Select the stock you want to sell. 3. Click on “Sell”. 4. Enter the number of shares you want to sell. 5. Set the limit price. 6. Select “Pre-Market” as the order type. 7. Click on “Review Order”. 8. Review the order details. 9. Click on “Submit Order”.
Tips for Successful Pre-Market Trading in Robinhood
1. Do your research: Before trading in the pre-market session, make sure you do your research. Understand the news or events that might affect the stock price and make an informed decision. 2. Use limit orders: In pre-market trading, the bid-ask spread can be wider than in the regular market session. To avoid paying more than you want to, use a limit order to set the price. 3. Be patient: Pre-market trading can be slower than the regular market session. Be patient and wait for the right opportunity to make a trade. 4. Monitor the stock price: Keep an eye on the stock price during the pre-market session. The stock price can fluctuate rapidly, so be prepared to take action if necessary. 5. Have a plan: Have a plan in place before trading in the pre-market session. Know your entry and exit points and stick to them.
Conclusion
Pre-market trading in Robinhood can be a great opportunity for investors to take advantage of any overnight news or events that might affect the stock price. However, pre-market trading comes with higher risks, including higher volatility and lower liquidity. To be successful in pre-market trading, investors need to do their research, use limit orders, be patient, monitor the stock price, and have a plan in place. LSI Keywords: Robinhood pre-market trading, sell in pre-market Robinhood, pre-market session, trading volume, regular market session. NLP Keywords: trading platform, young investors, trading volume, liquidity, transaction costs.