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How Should Investors Approach Premarket Trading?

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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.

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