Want to trade smarter? Start with a pre-market trading checklist.

Preparing before the market opens helps you avoid emotional decisions, spot opportunities, and manage risks effectively. Here’s a quick summary of the 7 steps to include in your pre-market routine:

1. Check the Economic Calendar: Look for Singapore-specific events (e.g., MAS announcements) and global developments (e.g., US Fed updates) that may impact SGX.
2. Identify Pre-Market Movers: Use tools to track stocks with unusual activity, like high volume or price gaps, before 9:00 AM SGT.
3. Do Technical Analysis: Analyse charts, support/resistance levels, and trends across multiple time frames to refine your entry and exit points.
4. Set Risk Management Plans: Calculate position sizes, set stop-loss orders, and plan for gaps to protect your capital.
5. Gauge Market Sentiment: Use indicators like the VIX and Put/Call ratio, and monitor MAS updates and regional money flows.
6. Place Pre-Market Orders: Use limit orders and staggered entries to navigate low-liquidity pre-market conditions.
7. Review Your Work: Track your predictions, refine strategies, and document lessons daily for continuous improvement.

Why it matters: A structured pre-market routine builds discipline, reduces errors, and helps you trade with confidence. Start small – pick a few steps, stick with them, and expand as you gain experience.

How to Prepare for Your Trading Day; My Pre Market Checklist

Step 1: Check the Economic Calendar for Market-Moving Events

Start your trading day by reviewing the economic calendar to identify events that could influence market movements. This helps you time your trades and spot potential entry or exit points during periods of volatility.

Focus on Singapore-Specific Data Releases

Pay close attention to events that directly affect Singapore’s economy and the Singapore Exchange (SGX). For instance, announcements from the Monetary Authority of Singapore (MAS) are crucial, as they shape interest rate policies and currency trends.

Recent data reveals a mixed outlook for Singapore’s economy. While GDP grew by 3.8% year-on-year, it shrank by 0.6% quarter-on-quarter^[1][2]. Such contrasting signals could open up trading opportunities.

“MAS will continue with the policy of a modest and gradual appreciation of the S$NEER policy band. However, the rate of appreciation will be reduced slightly.” – Monetary Authority of Singapore^[1]

Additionally, keep an eye on China’s PMI data. Unexpected changes in Chinese manufacturing activity can ripple through Singapore’s markets, given the close economic ties between the two countries^[3].

Use an economic calendar that displays event timings in Singapore Time (SGT, UTC+8). For example, the POEMS Economic Calendar lists the Singapore Manufacturing PMI release at 21:00 (SGT)^[5].

Forecasts indicate that Singapore’s GDP growth may slow to between 0.0% and 2.0% in 2025, while MAS Core Inflation is expected to average 0.5% to 1.5%^[1]. These projections provide a baseline for interpreting actual data; any significant deviation could lead to sharp market movements.

Once you’ve reviewed local indicators, shift your attention to global events that could impact Singapore’s markets.

Monitor Global Events That Influence Singapore Markets

Global developments often affect Singapore’s economy, especially through interest rate trends. For instance, Singapore’s SORA closely follows changes in the US Federal Funds Rate^[4]. Tracking US economic reports – like employment data, inflation figures, and Federal Reserve meeting minutes – can help you anticipate overnight market movements, particularly in sectors tied to global demand.

China’s economic performance is another critical factor. Unexpected shifts in China’s industrial production or retail sales can quickly affect Singapore’s export-driven companies.

Make sure to double-check event timings in SGT to align them with your trading schedule.

Lastly, use economic calendars that categorise events by their potential market impact – high, medium, or low. High-impact events often require you to adjust your positions or set protective stops. Medium-impact events may offer intraday trading opportunities, while low-impact events are generally less urgent unless they deviate significantly from expectations.

Step 2: Find Pre-Market Movers on SGX

Once you’ve reviewed the economic calendar, the next step is to pinpoint stocks showing unusual activity before the SGX opens at 9:00 AM SGT. These movements often highlight opportunities triggered by overnight news or earnings reports.

Look for High Volume in Key Sectors

Start by focusing on STI components and major sectors like banking, REITs, and commodities. Pre-market trading volume can reveal institutional interest and validate price gaps. If trading volume exceeds the 10-day average and is paired with notable price shifts, it could signal momentum that might carry over into regular trading hours^[9].

To help with this, tools like Moomoo offer advanced charting features to spot market movers^[6]. Similarly, Realtime Stock Screener provides mobile-friendly options for tracking pre-market activity^[7], and Tiger Trade delivers real-time quotes during extended trading sessions^[8].

Set your scanner to flag stocks with price gaps of at least 1% and above-average volume. Volume is a key indicator of market interest, often accompanying significant price swings^[13]. For example, on 21 April 2022, BHP Billiton’s shares dropped more than 3% pre-market after news of reduced copper production. By the end of the trading day, the stock had fallen 7.7%^[8].

These volume signals provide a foundation for verifying trade catalysts through news analysis.

Monitor News for SEA and Tech Stocks

News events often drive pre-market price gaps, especially in low-volume hours where even minor updates can have a big impact^[10][11]. Focus on companies like Sea Limited, SG-listed tech stocks, and semiconductor firms, as these are particularly sensitive to overnight developments in the US or China. Always cross-check news from multiple sources to ensure accuracy before making any trading decisions^[9].

“Using a screener for premarket stocks helps you identify the assets that fit your criteria…giving you a leg up on the other traders.” – Tim Bohen, StocksToTrade^[9]

Evaluate whether the news justifies the price movement and consider if the momentum will persist once regular trading begins^[12]. If the catalyst is weak, gaps may close quickly after the market opens^[9].

“Gaps of more than 4% are good for Gap and Go! trading, Gaps under 4% tend to fill, making them less attractive.” – Ross Cameron^[9]

Pay attention to volume patterns alongside price movements to better understand market trends and shifts in investor sentiment^[13]. If pre-market volume is low, it’s wise to trade smaller positions unless there’s a clear indication of strong momentum^[9].

With pre-market movers identified, you can now proceed to technical analysis to fine-tune your entry and exit points.

Step 3: Do Your Technical Analysis

Once you’ve identified pre-market movers, the next step is to refine your strategy with technical analysis. This helps you pinpoint entry and exit points and keeps emotions out of your trading decisions.

Use Collin Seow’s 3-Pillar Chart Strategy

Collin Seow’s 3-Pillar Strategy blends time-tested techniques, disciplined risk management, and a structured approach. During pre-market hours, this method allows you to spot high-probability trade setups before the SGX opens at 9:00 AM SGT.

Incorporate tools like moving averages, volume profiles, and oscillators to confirm market trends. At the same time, mark key support and resistance zones – these levels often influence price action, particularly in the low-volume environment of pre-market trading. Pay close attention to areas where prices have previously reversed or consolidated, as such zones often repeat their behaviour.

“Without the right mindset, you won’t be able to follow your strategy and will disregard risk when the time comes.”
– Collin Seow

Backtesting is crucial. Validate your technical setups to ensure they have a positive expectancy. This step stops you from impulsively chasing every pre-market gap without proper analysis. Keep in mind that not every technical pattern will play out as expected, so always seek confirmation before placing your trades.

Volume strength is another critical factor during pre-market hours. A breakout above resistance on thin volume can often reverse once regular trading begins, so verify the strength of the move before acting.

Check Multiple Time Frames

Relying on just one time frame can leave you with an incomplete picture. Analysing multiple time frames provides a broader perspective and helps you fine-tune your trade timing.

Start by using longer time frames, such as weekly or 60-minute charts, to establish the overall trend. Then, drill down to intermediate or shorter time frames, like 15-minute charts, to identify precise entry signals. This top-down approach ensures your trades align with the broader market direction.

However, be aware of potential conflicts between time frames. For example, a bullish setup on a 15-minute chart might contradict a downtrend on a daily chart. In such cases, it’s usually wiser to prioritise the longer time frame for a more reliable read on market conditions.

Indicators like the Relative Strength Index (RSI) can also provide valuable insights across time frames. If the RSI shows overbought or oversold levels on both daily and shorter charts, it could signal a strong reversal opportunity. On the other hand, conflicting signals suggest it’s better to wait for clearer confirmation before making a move.

One of the biggest advantages of multiple time frame analysis is its ability to reduce risk. By identifying support and resistance levels across various time frames, you can set more effective stop-loss orders. This gives your trades room to breathe while maintaining disciplined risk control.

To filter out false signals – especially common during low-liquidity pre-market hours – combine moving averages, momentum oscillators, and volume analysis. This layered approach helps you avoid getting caught in unreliable moves.

Lastly, remember that pre-market price movements often fail to hold once regular trading begins. Use your technical analysis to evaluate whether the overnight action has enough momentum to continue or if it’s likely to reverse when institutional traders enter the market.

For a seamless workflow, use a 60-minute chart to determine the broader trend and shorter time frames, like 5- or 15-minute charts, for precise entries and exits. Completing this technical analysis sets the stage for effective risk management and position sizing.

Step 4: Set Up Your Risk Management Plan

Once you’ve completed your technical analysis, it’s time to establish a solid risk management plan to protect your trading capital.

Calculate Position Sizes in SGD

Position sizing is about determining the number of shares you should buy based on your risk tolerance and available funds. The key is to risk only what you can afford to lose.

A common approach among traders is the 1-2% rule, where no more than 2% of your total trading capital is risked on a single trade. For retail investors in Singapore, this conservative method helps sustain your capital through inevitable losing trades.

“Proper position sizing techniques are a frequently neglected topic when learning trading strategies, yet they play a critical aspect of risk management in trading.” – Adrian Reid, Founder and Trading Coach at Enlightened Stock Trading ^[14]

Here’s the basic formula for position sizing:

Number of shares = (Account equity × Risk percentage) ÷ Risk per share

For instance, with a S$50,000 trading account, if you decide to risk 1% per trade (S$500) and plan to enter a stock at S$10.00 with a stop-loss at S$9.50 (a S$0.50 risk per share), your position size would be:

S$500 ÷ S$0.50 = 1,000 shares

Keep in mind that trades on the SGX must adhere to round-lot requirements. If your calculated position size doesn’t align with these lot sizes for higher-priced stocks, you’ll need to adjust your trade size and risk parameters accordingly.

Market volatility should also play a role in your position sizing. During periods of heightened volatility – like earnings seasons or major economic announcements – reducing your position size can help cushion the impact of larger price swings.

Set Stop-Loss Levels and Plan for Gaps

Stop-loss orders are essential for limiting potential losses, but their placement requires careful consideration. The aim is to protect your capital while avoiding being prematurely stopped out of trades that could turn profitable.

Using technical levels is a reliable way to set stop-loss orders. For long trades, stops can be placed just below key support levels, while for short trades, they can go just above resistance levels. Moving averages, such as the 20-period or 50-period, may also serve as helpful guides depending on your trading timeframe.

Gap risk – when a stock’s opening price is significantly different from its previous close – can complicate stop-loss strategies. Gaps often occur due to overnight news or events, and stop-loss orders may execute at prices far from your intended level.

Here are some strategies to manage gap risk effectively:

• Reduce your position sizes before major events like earnings announcements or significant economic updates.
• Use higher risk-reward ratios to ensure that your winning trades offset any potential gap-related losses.
• Consider hedging with put options to guard against unexpected downturns caused by gaps.
• Swing traders might close positions before major announcements, while day traders should monitor overnight developments closely.

Volatility should guide your stop-loss placement. Stocks with higher beta values often require wider stop margins to avoid being stopped out by normal fluctuations, while more stable stocks can handle tighter stops.

Market conditions also influence stop-loss strategies. In volatile markets, some traders prefer smaller positions with wider stops to reduce the likelihood of being stopped out, while others may adjust their approach based on current trends.

It’s worth noting that pre-market price movements often reverse when regular trading begins at 9:00 AM SGT. Use your overnight analysis to set initial stop-loss levels, but be ready to adjust them based on the opening price action and trading volume.

Step 5: Check Market Sentiment and Confirm Trade Ideas

After conducting your technical analysis and setting up risk parameters, the next step is to assess market sentiment. This helps refine your entry points and confirm your trade ideas.

“Market sentiment refers to the collective attitude of investors towards specific securities or the overall market.” ^[15]

Warren Buffett’s timeless advice captures the essence of sentiment-based decisions:

“Be fearful when others are greedy, and greedy when others are fearful.” ^[15]

To gauge sentiment, traders often turn to indicators like the CBOE VIX, Put/Call ratio, and High-Low Index. For example:

• A high VIX value typically signals increased market volatility and bearish sentiment, as it often moves inversely to the S&P 500. Singapore traders can monitor the VIX during pre-market hours to anticipate global risk appetite before the SGX opens at 9:00 AM SGT.
• The Put/Call ratio offers another perspective. A ratio above 0.7 or 1.0 suggests bearish conditions, while readings below 0.7 (approaching 0.5) point to bullish sentiment ^[15].
• The High-Low Index compares stocks hitting 52-week highs versus lows. Readings above 50 indicate a bullish environment, while those below 50 reflect bearish trends ^[15].

By combining these tools, you can align your trade ideas with prevailing market conditions.

Review MAS and Regulatory Updates

Staying informed about updates from the Monetary Authority of Singapore (MAS) is essential, as regulatory changes can quickly shift market sentiment. Incorporating this step into your pre-market routine ensures you’re prepared for any developments that could impact your trades.

For instance, on 30 May 2024, MAS issued new Guidelines on Fair Dealing, which apply to all financial institutions and their customers ^[20]. Regulatory updates like these often influence investor confidence and trading activity.

Other MAS actions, such as short-selling restrictions or tax policy changes, can directly affect market liquidity and price discovery. It’s wise to adapt your trading strategies accordingly. MAS’s ongoing initiatives, like the Review Group aimed at strengthening the equities market, further highlight its commitment to enhancing Singapore’s financial ecosystem. As MAS stated:

“Improving the attractiveness of Singapore’s equities market can therefore enhance Singapore’s standing as a vibrant enterprise and financial hub.” ^[21]

Additionally, corporate actions – such as mergers, acquisitions, or restructuring announcements – can significantly impact individual stocks or entire sectors. Keep an eye on MAS announcements and financial news platforms for updates that could influence your trade decisions.

Monitor Global and Regional Money Flows

Tracking global and regional money flows adds another layer to your sentiment analysis. Capital movements often provide early clues about market direction before the SGX opens.

The Money Flow Index (MFI) is a useful tool here. It combines price and volume data to measure buying and selling pressure, ranging from 0 to 100. Readings above 80 suggest overbought conditions, while those below 20 indicate oversold levels ^[17]. Often referred to as a “volume-weighted RSI”, the MFI can highlight divergences between price trends and trading volume ^[17][18].

Regional money flows are just as critical. For instance, overnight trading in markets like Hong Kong, Tokyo, and Seoul can influence sentiment for Singapore stocks, particularly in sectors like banking and technology. Institutional buying in these regions often sets the tone for SGX performance. Observing the final trading hour in these major markets can reveal institutional trends ^[19].

An example of how money flows impact sentiment is DBS Group Holdings’ financial year 2024 performance. The company reported a record net profit of S$11.4 billion – an 11% increase from the previous year – which boosted investor confidence ^[16].

Step 6: Place Your Pre-Market Orders

Once you’ve done your pre-market analysis and set your risk parameters, it’s time to execute your orders. Pre-market trading can be tricky – liquidity is tighter, and bid–ask spreads tend to be wider than during regular trading hours ^[22][23]. To navigate this, focus on strategies that optimise your entry points and order settings.

Use Collin Seow’s Limit Order Strategies

During pre-market hours, limit orders are your best friend. The pre-market environment primarily relies on limit orders placed through your broker or an electronic communication network (ECN) ^[23]. For established SGX stocks like DBS Group Holdings or Singapore Telecommunications, a tiered entry strategy works well. Let’s say you plan to buy 2,000 shares of DBS at S$38.50. Instead of placing a single order, you could break it into smaller chunks – 500 shares at S$38.45, another 500 at S$38.50, then 500 at S$38.55, and the last 500 at S$38.60. This staggered approach helps you manage volatility while potentially improving your average entry price.

When deciding on your limit prices, consult analyst projections from various sources and calculate an average to identify a fair entry point ^[24]. For ETFs tied to the Straits Times Index, setting your limit orders S$0.02 to S$0.05 above the previous night’s closing price can increase the likelihood of execution ^[24].

Timing matters too. Even a 300-millisecond delay can impact your trade ^[27]. To stay ahead, place your orders well before the market opens at 9:00 AM SGT. If you’re aiming to secure a better price without overpaying, consider placing your limit order slightly above the ask price ^[26].

Once your limit order strategy is in place, fine-tune your approach by selecting the most suitable order types.

Select the Right Order Types

Choosing the correct order type can make all the difference, especially in pre-market trading where volatility and liquidity vary significantly. Limit orders are generally the go-to choice, but you may need to customise your order settings. For example, during volatile periods or when liquidity is low, adjust parameters like fill conditions or cancellation policies to strike a balance between execution speed and price control.

Keep an eye on the economic calendar before placing your orders. High-impact announcements can disrupt trading and throw off your strategy ^[28]. Additionally, monitor global market trends. Singapore’s market opens after major Asian hubs like Tokyo and Hong Kong, so their overnight performance can offer clues about SGX sentiment.

Be flexible. If conditions shift, don’t hesitate to cancel or modify your orders. Limit orders can be adjusted anytime before execution, so stay alert to pre-market price movements and breaking news. If unexpected developments overnight change your trading thesis, it’s better to reassess and realign your strategy ^[25]. Pre-market trading requires vigilance, but with the right tools and strategies, you can position yourself effectively.

Step 7: Review and Record Your Pre-Market Work

Your pre-market preparation isn’t complete once the market opens. To truly refine your trading strategy, you need to review your predictions against actual market outcomes on a daily basis. This step turns your preparation into a valuable learning tool.

Track Your Pre-Market Analysis Results

Begin by comparing your pre-market predictions with the day’s actual trading activity. Research indicates that pre-market movements account for an average of 36.68% of the daily price action for major indices ^[30]. However, the connection between pre-market trends and intraday performance is not always clear-cut. For instance, a stock that rises during pre-market has about a 50.77% chance of continuing its upward movement during regular trading hours ^[30].

To make this process efficient, set up a simple tracking system. For each stock you analyse, log details such as:

• Pre-market price movement and predicted direction
• Actual performance during regular trading hours
• Volume patterns and news catalysts you identified
• Accuracy of your technical analysis

Earnings season deserves special attention. During quarterly reporting periods, S&P 500 and Nasdaq 100 stocks only increased in both pre-market and intraday sessions 27.10% of the time ^[30]. When stocks did rise pre-market during earnings season, the likelihood of further intraday gains was just 52.4% ^[30]. By documenting your earnings-related predictions, you can pinpoint which types of announcements you interpreted correctly.

If you trade “Gap and Go” setups, track these separately. Note which stocks that gapped up by more than 4% turned into profitable trades. Record the catalysts you identified and observe whether the pre-market highs you marked acted as resistance or support during regular trading hours.

Additionally, take note of instances when your limit orders were filled or missed. This data can help you fine-tune your order placement strategy. Over time, these insights will help you refine your overall approach.

Adjust Your Trading Parameters

Use the data you’ve gathered to fine-tune your trading tools and strategies. Consistently review your screening filters, position sizing, risk settings, and news sources. For example, when trading SGX stocks, you might discover that specific volume thresholds work better for REITs than for technology stocks, or that different technical patterns yield varying results depending on market capitalisation.

When testing changes to your strategy, start small. For example, if your analysis suggests adjusting entry timing or technical indicators, validate these tweaks with reduced-size trades over several sessions. This cautious approach protects your capital while allowing you to confirm whether your adjustments improve performance.

It’s also essential to review your monthly order execution metrics. Use this data to refine your order placement strategy, taking into account factors like fill rates and market volatility.

Lastly, remember the psychological aspect of trading. Research suggests that trading psychology accounts for 80% of market success, while technical knowledge contributes only 20% ^[31]. As part of your review, evaluate how your emotions influenced your decisions. Document any emotional triggers and work on strategies to maintain discipline.

Close the loop on your trading process by documenting your pre-market scanning routine. Record the stocks you selected, your reasons for choosing them, and the outcomes of your trades ^[29]. This systematic review ties together your analysis, risk management, and execution, helping you continuously improve.

Conclusion: Build Better Trading Habits Through Daily Preparation

Success in trading doesn’t come from flawless predictions or perfect timing – it stems from discipline and consistent habits, especially during pre-market preparation. By committing to a solid routine, you not only create structure but also set yourself up for better decision-making and improved outcomes.

Studies indicate that trading psychology accounts for 80% of market success and helps prevent 65% of common errors ^[31]. This highlights the importance of a disciplined routine in reducing emotional mistakes. When you’ve reviewed the economic calendar, pinpointed key levels, and set clear risk parameters, you’re less likely to act impulsively when the market opens.

“A well-defined trading routine fosters trading discipline and focus. This structured approach allows traders to analyze markets, identify opportunities, and execute strategies.”

• Ritika Tiwari, Blueberry Markets

By following a daily preparation process, you can turn your pre-market work into actionable insights. Comparing predictions with actual market movements helps you spot recurring patterns, giving you a sharper edge over time.

Feeling overwhelmed by the full checklist? Start small. Pick three steps that align with your trading style and stick with them for a couple of weeks. Once these become second nature, gradually add more steps. The aim isn’t instant perfection – it’s about building consistency and refining your approach.

With Singapore’s market opening alongside other active exchanges, a well-prepared morning routine ensures you stay calm, organised, and ready to execute your plan, rather than reacting to overnight developments in a rush.

FAQs