Every morning I create a written game plan with 8-10 stocks that I believe will offer the best risk/reward trading setups. The game plan is divided into two categories: Fresh News/In Play Stocks and Second Day/Technical Plays. As I was creating today’s game plan I began to feel a small level of anxiety as I wondered how to hone in on the two to three best setups and their most likely patterns. After sitting at my desk observing pre-market trading for about 45 minutes I arrived at my Top 3 ideas–two shorts and one long.

The areas circled in blue are prices where I initiated positions in each of the three stocks.

My process allowed me to arrive at the correct bias for each stock and very low risk high reward entry levels. I used automated scripts to help me execute all three trades (I’ve been doing this a long time and need whatever help I can get).

After I put together the game plan I speak to traders on the desk as well as SMB Trader90 members about my thoughts on each stock on the list and why I’m leaning long/short or perhaps just waiting for things to unfold on the Open. The one stock on the list that I took a loss on today was CSIQ which I underestimated how much it might sell off. I’ve shared the full pre-market video from today if you are interested. Pardon the background noise as the trading desk can be a bit rowdy during earnings season.

Steven Spencer is the co-founder of SMB Capital and SMB University which provides trading education in stocks, and options. He has traded professionally for 19 years. His email address is: [email protected].

Steven Spencer is currently long BRCM, FB, GPRO, OHRP, P, SNDK, TASR, TLT, TWTR and short SBUX