Top 7 Things to Know Before the Stock Market Opens

Before you begin trading stocks, there are a few things you should know. In this article, we will go over the top 7 things to know before the stock market opens. By understanding these concepts, you will be better equipped to make informed decisions and hopefully see some success in the stock market!

How does stock market work?

The stock market is a collection of markets where stocks (pieces of ownership in businesses) are traded between investors. It usually refers to the exchanges where stocks and other securities are bought and sold. The stock market can be used to measure the performance of a whole economy, or particular sectors of it.

things to know before the stock market opens

What drives stock prices?

Stock prices are driven by a number of factors, including company performance, global events, and investor sentiment. Generally speaking, when companies do well, their stock prices will rise. Global events can also have an impact on stock prices, as can changes in investor sentiment (how confident or pessimistic investors are about the prospects for a particular company or the market in general).

How can I buy stocks?

There are a few different ways to buy stocks. You can do it through a traditional broker, an online broker, or directly from a company through what’s known as a direct purchase plan. Each option has its own pros and cons, so it’s important to understand how each works before making a decision.

What Factors Can Affect The Stock Market?

There are many factors that can affect the stock market, including political and economic events, changes in interest rates, and company news. It is important to keep up with these factors in order to make informed investment decisions.

When Does The Stock Market Open?

The stock market opens at 9:30am EST on weekdays. However, it is important to note that the market may be open earlier or later on some days due to holidays or events.

What Are The Stock Market Pre-trading Hours?

The stock market pre-trading hours are the period of time before the market opens when investors can buy and sell stocks. The pre-trading hours are also known as the “pre-market.”

The pre-market is a period of time when stocks can be traded, but not all stocks are available to trade. Only certain stocks, called “listed stocks,” can be traded during the pre-market. Listed stocks are those that are traded on exchanges, such as the New York Stock Exchange (NYSE) or the Nasdaq Stock Market.

Investors can buy and sell listed stocks during the pre-market, but they may not get the same price for their stocks as they would during regular trading hours. This is because there is usually less trading activity during the pre-market, so there may be more volatility in prices.

The pre-market is open from 4:00 a.m. to 9:30 a.m. Eastern Time (ET).

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Top 7 things you know before stock market opens

1. Update yourself with the national news.

Check the national news for any major announcements or changes that could affect the stock market. This includes things like new economic policies, trade agreements, or political developments. Keep an eye on global markets. While the US stock market is the most important one, it is not the only one. Global events can still have an impact on US stocks.

Know what time the stock market opens. The New York Stock Exchange (NYSE) opens at 9:30 AM EST, while the Nasdaq opens at 9:00 AM EST. It is important to know when the market opens so that you can make trades in a timely manner.

2. Have a plan before you start trading.

Decide what stocks you want to buy or sell, and set limits on how much you are willing to spend. This will help you stay disciplined and avoid making impulsive decisions. Use a reputable broker. When you are ready to start trading, make sure to use a broker that is registered with the Securities and Exchange Commission (SEC). This will ensure that your broker is held to high standards and that your trades are executed properly.

3. Don’t ignore your international news either.
When it comes to the stock market, it’s important to stay up-to-date on all the latest news. That includes news from around the world, not just from your own country. International events can have a big impact on the markets. For example, Brexit – the United Kingdom’s vote to leave the European Union – caused a lot of uncertainty in the markets. If you want to be a successful investor, you need to be aware of what’s happening in the world. Pay attention to international news stories and try to understand how they might affect the markets.

4. Understand key resistance levels of major indices.
The stock market can be a volatile place, and it is important to understand the key resistance levels of major indices before trading. These levels can help you to identify potential areas where the market may turn around, and they can also give you a better idea of when to exit a trade. The Dow Jones Industrial Average (DJIA) is one of the most widely-followed stock indices in the world. The index consists of 30 large, publicly-traded companies from a variety of industries. The DJIA is currently trading at around 27,000 points. The key resistance level for the index is at 27,500 points. This is the level where the market turned around in February 2020, and it is also the level that the index failed to break above in March 2020. The S&P 500 is another major stock index that includes 500 large, publicly-traded companies from a variety of industries. The index is currently trading at around 3,200 points. The key resistance level for the S&P 500 is at 3,300 points. This is the level where the market turned around in February 2020, and it was also the high for the month of March 2020.

5. Watch out for major announcements.
The stock market can be a volatile place, and there are a lot of things that can affect the value of stocks. One of the most important things to watch out for are major announcements. There are a few things that can trigger a major announcement. One is when a company releases its earnings report. This can cause the stock price to go up or down depending on how the report looks. Another thing to watch out for is when the Federal Reserve announces changes to interest rates. This can also have a big impact on the stock market. If you are investing in stocks, it is important to keep an eye on these announcements so you can make sure your investments are safe.

6. Keep track of major scientific developments.
The stock market can be a volatile place. Before you start trading, it’s important to keep track of major scientific developments that could affect the stock prices.

Some things to keep an eye on include:

Significant breakthroughs in medical research: A new treatment or cure for a major disease could cause the stock prices of pharmaceutical companies to soar.
-New technologies: A company that develops a new and innovative technology could see its stock prices skyrocket.
-Changes in government regulations: Changes in government regulations can have a big impact on certain industries. For example, if the government imposes stricter environmental regulations, it could hurt the profits of companies in the oil and gas industry.

Keeping track of these developments can help you make more informed decisions about which stocks to buy and sell.

7. Political Factors

The stock market is affected by a variety of political factors. Political events can have a big impact on the stock market. For example, the 2016 presidential election caused a lot of uncertainty in the markets. The policies of the new administration can also affect the stock market. For example, President Trump’s tax reform proposal caused a lot of volatility in the markets. The Federal Reserve’s monetary policy can also affect the stock market. For example, when the Fed raises interest rates, it can cause a sell-off in the stock market.

You should always pay attention to the news and understand how political events can affect your investments.


The stock market is a complex and ever-changing entity, so it’s important to stay on top of the latest news and developments. These seven tips will help you get started on your journey to becoming a savvy investor. Remember, always do your own research before investing in any company or stock, and never risk more than you can afford to lose. With these guidelines in mind, you’re well on your way to success in the stock market!

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