馃攳
When to Buy Stocks Overnight? How to Grow a Small Trading Account Under PDT - YouTube
Channel: Humbled Trader
[0]
if you have a small account under PDT
[2]
and trading part-time while working a
[5]
full-time job then this strategy is
[7]
perfect for you
[9]
I'd a trade a part-time for many many
[11]
years while I was working in my
[12]
full-time job in part one of this video
[15]
I talked about how I managed my time
[18]
meticulously daily where I was working
[21]
my night and 7 job five days a week and
[23]
sometimes even six days a week but I
[26]
still managed to study the markets two
[28]
to three hours every single evening even
[31]
pre my kids treated at the open and one
[34]
hour before the close and one of my
[36]
favorite strategies I used to grow my
[38]
small accounts while was working full
[40]
time was to buy a stock overnight and
[43]
swing it next day for a potential pre
[46]
market gap up or a morning spike and for
[49]
those traders under the PDT rule in the
[52]
u.s. this is great news for you because
[55]
an overnight swing does not count as a
[58]
day trade so in this video we'll be
[60]
talking about the three specific
[61]
criteria and look for where I'm buying a
[64]
stock overnight for a swing we'll be
[67]
talking about the technical setups
[69]
potential risk reward and I'll be going
[72]
through step by step how to find these
[74]
potential swings overnight for free and
[77]
fin this but of course the most
[79]
important criteria of this overnight
[81]
swing strategy is if you tap the like
[85]
button at the bottom of this video
[87]
seriously though this strategy isn't
[89]
going to work unless you've done that so
[91]
let's get into this the first criteria
[93]
and look out for when I'm buying a stock
[95]
overnight is the daily chart
[98]
so that's look at an example here SDC
[101]
from a purely technical analysis
[104]
standpoint I want to see the current
[106]
daily candle closing above the previous
[109]
candles I don't normally look at the
[112]
wicks on the daily charts when I'm
[113]
looking for a swing and look at the
[115]
opening and closing of the candles so
[118]
what does that mean exactly you guys
[120]
know that I don't really care much about
[122]
patterns in day trading but when I'm
[125]
looking to swing a stock overnight I
[127]
care about the patterns on the daily
[129]
chart more closely so when a day
[132]
Kendall is closing above previous
[134]
resistance near the end of the day it
[137]
means that is enough buyers in the stock
[139]
to push the stock above the previous
[142]
supply levels from the sellers on the
[145]
daily chart so looking at the stock SDC
[148]
we can see that on this day the stock
[151]
was closing around 13 72 and if we look
[154]
at a daily chart the closest resistance
[157]
level was of course the previous day
[159]
around 1217 which also corresponds to
[163]
the resistance levels in the beginning
[166]
and mid November here around 12 20s so
[169]
it looks like were clearing the closest
[171]
resistance at 12 20s and we go the next
[174]
level up the next resistance is at 13
[177]
50s and we go even further we can see
[180]
another level at 15 30s so that means
[183]
we're closing above the two closest
[186]
resistance levels to our daily level
[188]
right now and the sock now has a
[191]
potential upside of going towards 15 30s
[195]
so this example would be an extremely
[198]
bullish daily chart and it's important
[201]
when you're looking to buy a stock
[202]
overnight for a swing while we're on a
[205]
daily chart for SDC the second important
[208]
criteria and look out for is volume you
[211]
can visually see the increase of volume
[213]
down there and even all the volume bars
[216]
are closing stronger than other bread
[218]
candles on the volume which indicates
[221]
selling but very important to remember
[223]
though while you do not always need a
[226]
steady increase of volume like SDC here
[229]
you definitely want to avoid daily
[232]
charts like look at this this means that
[234]
there's absolutely no one trading it and
[236]
usually the daily volume is less than
[239]
hundred thousand shares this is what we
[241]
call the barcode chart and you can
[244]
easily see the average daily volume
[245]
where you go to fin viscom ideally you
[249]
want to see the stock trading more than
[251]
500,000 shares average daily to swing it
[254]
overnight because there has been time so
[256]
I'm stuck with liquidity issues
[258]
especially on some of these thinly
[261]
traded penny stocks and sometimes even
[263]
mid caps and I couldn't sell my position
[265]
so very important to always check her
[267]
daily average volume you don't want to
[270]
be stuck with like 40 cent spreads and
[272]
you end up holding the bag so before we
[275]
go on to criteria number three let me
[277]
show you step by step and how I look for
[280]
these stocks to swing overnight for free
[282]
I'm fin vez and give you my analysis
[285]
based on my two previous criterias ok so
[288]
right now what I am is calm and when
[291]
you're in here you click screener this
[293]
is the famous free screener over here
[295]
and I like to input the following
[297]
filters i've used nitrate nasdaq and
[300]
like a cap usually our scam for things
[302]
under two billion relative volume i want
[305]
to see over one to see a volume increase
[308]
and average daily volume i want to see
[310]
over 500k the criterias we talked about
[313]
earlier current volume of course over
[315]
500k and price you can put this at your
[319]
discretion for overnight play or playing
[321]
at the open but for this example let's
[323]
do under $20 and when you are done you
[327]
can click charts and fin this will show
[329]
you a little snapshot of known that they
[331]
do charts of the stocks that meet your
[333]
criteria sup here and also another thing
[335]
is by default the screener will show you
[337]
the technical charts but if you click
[339]
candle you can see a lot closer to the
[342]
closer timeframe on the daily so if we
[344]
if I'm looking for stocks to swing
[346]
overnight I want to see how the grito I
[348]
don't like this chart I can play
[350]
anything but with a taller I just don't
[353]
like that AMD this looks pretty nice
[355]
like from the screenshot you can see
[357]
that let's increase a volume and the
[359]
daily curl which one we talked about we
[361]
want this current daily kendo to close
[364]
above the previous resistance right
[366]
according to criteria number one but
[367]
this is a potential so you can keep that
[369]
and watch I don't like this I don't like
[371]
that this is possible if a krx if we
[374]
close above the screen candle right here
[377]
because that's a resistance level but
[379]
you can keep that and watch none of this
[381]
is for me this one maybe if we can close
[384]
above a dollar forty but the daily
[386]
volume is not enough so that's not good
[389]
this Kara this looks nice actually like
[391]
the daily volume there's slight increase
[393]
and we're closing above the previous
[395]
resistance of the previous resistance
[397]
there's room on a daily chart to around
[399]
dollars so you can keep that on watch as
[401]
well for a possible swing overnight and
[404]
or playing at the open jury intraday but
[407]
again this just gives you a snapshot of
[410]
the what a day D looks like I'm finished
[412]
there is a delay so that's why it's
[414]
important to pick the stocks you want to
[416]
look at from here and then go to your
[418]
broker and look at how it's trading
[419]
intraday again but this is just a really
[421]
quick way to scan for stocks a trade
[423]
like f c/e l this looks really nice for
[426]
an overnight candidate this chart we're
[429]
closing near the previous resistance and
[431]
there's increase of volume so that looks
[433]
nice so that's why I will look for IMS G
[436]
this one looks nice as well you can see
[438]
we're closing above $9 again you wanna
[440]
go to your broker and zoom out and see
[443]
what a daily chart I'm a bigger
[444]
timeframe looks like i/o as well we're
[447]
closing above the previous resistance
[449]
over here and we have upside to the tip
[452]
of the scandal and possibly four dollars
[454]
so this is how you quickly look for
[456]
potential overnight trades really
[458]
quickly here and again you want to make
[460]
sure it meets our criteria number one
[462]
and criteria number two so an LM k that
[465]
looks kinda nice as long as we close
[467]
above these resistance area right here
[469]
so this is how you can quickly scan for
[472]
stocks to possibly buy overnight for a
[475]
swing and again you can go in and adjust
[477]
all these filters up here in your famous
[479]
scanner so Finn this is a great tool for
[482]
all the beginner traders and experienced
[484]
alike I used it a lot when I was trading
[487]
part-time and working a full time job I
[490]
used it to look for overnight swing
[492]
positions and potential place at the
[494]
open the next morning but something it
[496]
doesn't have is the pre market scanners
[499]
because it's a free tool after all I
[501]
mean the charts data is delayed the
[503]
think or swim platform does have a pre
[506]
market scanner it's not the best but it
[508]
gets the job done
[509]
it's also free after all okay so now
[512]
that we talked about the first two
[513]
criterias which are all based on
[516]
technical analysis on the daily chart
[518]
let's talk about criteria number three
[520]
for this overnight swing strategy which
[523]
is a fundamental catalyst
[525]
I consider myself both a fundamental and
[528]
technical trader meaning I don't trade
[530]
just based on technical
[531]
patterns or just based on fundamental
[534]
catalyst I'm a mix I won't both a
[537]
fundamental catalyst and a technical
[539]
setup to align together that strengthens
[542]
my thesis on my de treat and swing
[544]
trades both our overnight swing
[546]
positions and the ones that takes a few
[548]
days or a few weeks okay so what kind of
[551]
fundamental catalysts are we talking
[553]
about as a criteria here
[554]
it could be something along the lines of
[556]
positive earnings new contract deals or
[559]
new partnerships to sum it up basically
[562]
it's any positive news that could
[564]
potentially increase the company's
[566]
earnings short term remember the stock
[569]
price increase or decrease is based on
[572]
the company's future earning potential
[575]
so if a company has a brand new contract
[578]
to sell at Walmart that's extremely
[581]
bullish because Walmart is a giant
[583]
retailer in North America that everyone
[586]
goes to okay actually just in the u.s. I
[588]
don't really like the Walmart in Canada
[591]
it's pretty sketch I prefer the Great
[593]
Canadian Superstore and of course Whole
[596]
Foods which is owned by a AMZN but
[600]
anyways a partnership with Walmart or
[602]
any other big retail giant would mean
[605]
that this company's earning potential
[607]
could drastically increase short term so
[611]
this will be a positive fundamental
[613]
catalyst another example of what I like
[616]
as a criteria number three for this
[618]
overnight swing is sector sympathy or
[620]
sector hype I've talked about sector
[623]
sympathy was sector hype in a few of my
[625]
past videos on the channel but basically
[627]
if a stock is part of the hot sector
[630]
right now in the daily chart is
[632]
technically bullish according to
[634]
criteria one and two then that will be a
[637]
prime candidate for an overnight swing
[639]
some good examples of the sector hype in
[642]
the past few years are the shippers
[644]
bubble in 2016 blockchain sector hype in
[648]
2017 and also cannabis stocks in 2018
[652]
and knighting so looking at SDC the
[655]
stock from our example earlier we
[657]
already know it meets criteria one and
[659]
two but doesn't meet our criteria
[662]
three so this is where a quick
[664]
fundamental research comes into play
[666]
looking at my Ben Zynga news research
[668]
tool we can see that SDC smiled direct
[672]
Club has recently launched a new line of
[675]
oral care products at Walmart so that's
[677]
big news
[678]
so this stock would be a good candidate
[680]
for an overnight swim position On
[682]
January 15th I usually like to enter my
[685]
swim position in the last one hour of
[687]
trading between 3 o'clock to 4 o'clock
[689]
p.m. Eastern Time which is perfect for
[692]
those trading part time because that
[694]
gives me the time to look at how the
[696]
stock is trading intraday and whether
[698]
it's holding strong on the daily if it's
[701]
closing strong and it meets all three
[703]
criteria that we just talked about
[705]
then I won't loan the stock near the end
[707]
of the day and sell it into a potential
[710]
pre market gap up or a morning spike
[713]
it's funny because I actually messed up
[715]
my very own SDC swing trade I entered a
[718]
little bit too early on January 6th and
[721]
got stopped out so I actually took a
[723]
loss on that swing trade only to see the
[725]
trading plan worked out perfectly a few
[728]
days later I am NOT a perfect trader
[731]
guys and I probably never will be this
[733]
is just a reality of day trading I'm
[735]
human after all but the hot stock I'm
[738]
gonna be talking about next it's a
[740]
perfect example of a swing overnight
[742]
that worked out perfectly and the stock
[745]
is Pinterest so on January 14th when I
[748]
took the swing position on Pinterest we
[750]
can see that the stock is closing around
[752]
21 50s on the datee Pinterest is an IPO
[756]
stock from 2019 so it doesn't have a
[759]
whole lot of charts history but we can
[761]
see the closest resistance level on the
[764]
daily is at the close of this candle
[766]
right here around 21 28 which is also
[770]
the daily gap next let's look at the
[772]
volume is there an increase of volume on
[775]
the daily charts and you can see that on
[777]
this day Pinterest traded 35 million in
[780]
trading volume so that's a lot higher
[783]
than a daily average of 11 million
[785]
shares now fundamentally Pinscher stock
[788]
has an amazing news from a market data
[791]
report showing that the platform has now
[794]
served
[794]
past snapchat as a third biggest social
[797]
media platform in the US with nine
[800]
percent increase of year-over-year user
[802]
growth
[803]
you might be thinking now all this
[805]
platform has a little bit more users now
[807]
big deal I just got two more dollars in
[810]
my limbo funds to which let's be real
[812]
here it's a much bigger deal but the key
[814]
is Pinterest is a social media platform
[817]
so just like Facebook and YouTube the
[820]
key to these companies revenue growth is
[822]
the active user growth just like this
[825]
channel the key to see more videos with
[828]
bad jokes they'll actually help with
[831]
your trading is if you remember to
[833]
gently click the like button at the
[836]
bottom of the video doing so will help
[838]
push the videos out to even more traders
[841]
like you and I and we found them helpful
[843]
I'm sure many others will as well it's a
[846]
win-win-win situation for all of us
[850]
so this Pinterest stock meets my
[852]
criteria of a bullish data charts
[854]
increase of daily average trading volume
[857]
and also a fundamental catalyst and so
[860]
that's why I bought the stock at 2160
[862]
I'm January 14th sold half into the
[865]
morning the next day at 22 40s and the
[869]
rest of it at 23 80s on January 17th now
[873]
is this swing overnight strategy going
[875]
to work 100% absolutely not
[878]
nothing is a hundred percent guaranteed
[880]
and day trading but if you follow the
[882]
three criteria I mentioned the chances
[885]
of the overnight swing set up working
[887]
out is dramatically higher and again
[889]
it's a perfect setup with those trading
[891]
part-time with a small account on the
[894]
PDT now if you found this swing
[896]
overnight slow strategy helpful there's
[898]
even more coming soon make sure to
[900]
subscribe and R in the notification bell
[902]
because next week I'll be going over
[905]
another one of my favorite long
[907]
strategies that's really suitable for
[909]
those trading part-time with a small
[911]
account under PDT we're just getting
[914]
started here my friends thank you guys
[916]
for watching as always and the humble
[918]
trader and I'll see you guys next week
Most Recent Videos:
You can go back to the homepage right here: Homepage