How Should Investors Approach Premarket Trading?

It may be tempting to make trades based off of big moves premarket. 

When the market is up 200 premarket, or down 200 premarket, you may be tempted to make moves. 

However, Jeff Marks, senior portfolio analyst with Jim Cramer's Action Alerts PLUS charitable trust, thinks investors should approach with caution.

He broke down his thoughts on TheStreet's Facebook Live show Friday morning. 

"So I think you have to look at it this way. As an investor, would you want to sell with the market down 200? Probably not. I think you have to look at it the same as would you buy when the market's up 200? Probably not. You have to do the opposite thinking, right? You want to buy low, sell high, and selling when the market's down and buying when the market's up isn't really gonna make you money. It's not a profitable strategy in the long run. So I think that's what you have to think and that's why you have to stay opportunistic when things are down, but you can't be greedy and you have to look to take some stock off when things are higher," said Marks.

Premium Pick: Just How Low Could Interest Rates Go in This Environment?

NYSE LIVE Replay: Game On? Breaking Down Nvidia's Quarter, GE and Market Volatility

Jim Cramer Quick Clip: Investing Is Not Politics

Trader Tips: After Such a Volatile Week, Investors Should Look at These Stocks

Trade War: Will We See a Recession by 2020, Trade Deal or No Deal?

Earnings Preview: Nvidia Earnings: 3 Things to Watch

TheStreet Explains: How to Use a P/E Ratio When Picking Stocks

Subscribe to our Youtube Channel for more videos : Listen our latest Podcasts on Soundcloud

Catch Up: Today's Top News Videos Below