Managing Premarket when it opens at 4:00AM but brokers open at 8:00AM or so

[JSOP]

I can think of many different ways:

1. Be flat by the end of the day
2. Have a stop loss order in place (with a broker that supports it)
3. Reduce the position size to a level that overnight fluctuations do not keep you up at night
4. Hedge your position
5. Diversify your holdings
6. Automate the exits (with a broker that supports it)
7. Ignore pre-market movements altogether
8. Switch to another broker which allows trading pre-market

It's a good list but for traders who are holding positions long term, be flat at the end of the day might not be an option. If you are doing long term trading then those pre/post-market fluctuations shouldn't matter to you as you are interested in the potentially BIG gain from holding the investment for a long time. If you are trading short-term, then any strategies from the list except the first one would be fine. And as someone mentioned earlier, those pre/post-market fluctuations are usually quite small due to the limited liquidity usually present during those times.