If you have a small account under PDT and trading part-time, while working a full-time job, then this strategy is perfect, for you I'd a trade, a part-time for many many years. While I was working in my full-time job in part, one of this video, I talked about how I managed my time meticulously daily, where I was working my night and 7 job five days a week and sometimes even six days a week, but I still managed to Study the markets two to three hours every single evening, even pre, my kids treated at the open and one hour before the close and one of my favorite strategies I used to grow. My small accounts, while was working full time, was to buy a stock overnight and swing it next day for a potential pre market gap up or a morning spike and for those traders under the PDT rule in the u.s.. This is great news for you, because an overnight swing does not count as a day trade.

So in this video we'll be talking about the three specific criteria and look for where I'm buying a stock overnight for a swing we'll be talking about the technical, setups potential risk reward and I'll be going through step by step. How to find these potential swings overnight. For free and fin this, but of course the most important criteria of this overnight swing strategy is, if you tap the like button at the bottom of this video seriously, though this strategy isn't going to work unless you've done that. So, let's get into this the first criteria and look out for when I'm buying a stock overnight is the daily chart.

So that's look at an example here, SDC from a purely technical analysis standpoint. I want to see the current daily candle closing above the previous candles. I don't normally look at the wicks on the daily charts when I'm looking for a swing and look at the opening and closing of the candles. So what does that mean exactly? You guys know that I don't really care much about patterns in day trading, but when I'm looking to swing a stock overnight, I care about the patterns on the daily chart more closely.

So when a day Kendall is closing above previous resistance near the end of the day, it means that is enough buyers in the stock to push the stock above the previous supply levels, from the sellers on the daily chart. So looking at the stock SDC, we can see that on this day the stock was closing around 13 72. And if we look at a daily chart, the closest resistance level was of course, the previous day around 1217, which also corresponds to the resistance levels. In the beginning and mid November here, around 12 20s, so it looks like were clearing the closest resistance at 12 20s and we go the next level up.

The next resistance is at 13 50s and we go even further. We can see another level at 15 30s, so that means we're closing above the two closest resistance levels to our daily level right now, and the sock now has a potential upside of going towards 15 30s. So this example would be an extremely bullish daily chart and it's important when you're looking to buy a stock overnight for a swing while we're on a daily chart for SDC. The second important criteria and look out for is volume.

You can visually see the increase of volume down there, and even all the volume bars are closing stronger than other bread candles on the volume which indicates selling but very important to. Remember, though, while you do not always need a steady increase of volume like SDC here, you definitely want to avoid daily charts. Like look at this, this means that there's absolutely no one trading it and usually the daily volume is less than hundred thousand shares. This is what we call the barcode chart and you can easily see the average daily volume where you go to fin viscom.

Ideally, you want to see the stock trading more than 500,000 shares average daily to swing it overnight, because there has been time. So I'm stuck with liquidity issues, especially on some of these thinly traded penny stocks and sometimes even mid caps, and I couldn't sell my position so very important to always check her daily average volume. You don't want to be stuck with. Like 40 cent spreads and you end up holding the bag so before we go on to criteria number three, let me show you step by step and how I look for these stocks to swing overnight, for free I'm fin vez and give you my analysis based on My two previous criterias, ok, so right now, what I am is calm and when you're in here you click screener.

This is the famous free screener over here and I like to input the following filters: i've used nitrate, nasdaq and, like a cap, usually our scam for things under two billion relative volume. I want to see over one to see a volume increase and average daily volume. I want to see over 500k the criterias we talked about earlier current volume, of course, over 500k and price. You can put this at your discretion for overnight play or playing at the open, but for this example, let's do under $ 20, and when you are done you can click, charts and fin.

This will show you a little snapshot of known that they do charts of the stocks that meet your criteria. Sup here and also another thing is by default. The screener will show you the technical charts, but if you click candle, you can see a lot closer to the closer timeframe on the daily. So if we, if I'm looking for stocks to swing overnight, I want to see how the grito I don't like this chart.

I can play anything but with a taller I just don't like that AMD. This looks pretty nice like from the screenshot. You can see that let's increase a volume and the daily curl which one we talked about. We want this current daily kendo to close above the previous resistance right, according to criteria number one, but this is a potential, so you can keep that and watch.

I don't like this. I don't like that. This is possible if a krx, if we close above the screen candle right here, because that's a resistance level, but you can keep that and watch. None of this is for me this one.

Maybe if we can close above a dollar forty, but the daily volume is not enough, so that's not good. This Kara. This looks nice actually like the daily volume, there's slight increase and we're closing above the previous resistance of the previous resistance. There's room on a daily chart to around dollars, so you can keep that on watch as well, for a possible swing overnight and or playing at the open, jury intraday.

But again, this just gives you a snapshot of the. What a day D looks like I'm finished, there is a delay, so that's why it's important to pick the stocks you want to look at from here and then go to your broker and look at how it's trading intraday again. But this is just a really quick way to scan for stocks: a trade like f, c/e l. This looks really nice for an overnight candidate.

This chart we're closing near the previous resistance and there's increase of volume. So that looks nice. So, that's why I will look for IMS. G, this one looks nice as well.

You can see we're closing above $ 9. Again you wan na go to your broker and zoom out and see what a daily chart. I'm a bigger timeframe, looks like i/o as well. We're closing above the previous resistance over here and we have upside to the tip of the scandal and possibly four dollars.

So this is how you quickly look for potential overnight trades really quickly. Here and again, you want to make sure it meets our criteria. Number one and criteria number two, so an LM k that looks kinda nice as long as we close above these resistance area right here. So this is how you can quickly scan for stocks to possibly buy overnight for a swing and again you can go in and adjust all these filters up here in your famous scanner.

So Finn, this is a great tool for all the beginner traders and experienced alike. I used it a lot when I was trading part-time and working a full time job. I used it to look for overnight swing positions and potential place at the open the next morning, but something it doesn't have is the pre market scanners, because it's a free tool. After all, I mean the charts data is delayed, the think or swim platform does have a pre market scanner - it's not the best, but it gets the job done.

It's also free after all. Okay, so now that we talked about the first two criterias, which are all based on technical analysis on the daily chart, let's talk about criteria number three for this overnight swing strategy, which is a fundamental catalyst. I consider myself both a fundamental and technical trader, meaning I don't trade just based on technical patterns or just based on fundamental catalyst. I'm a mix, I won't both a fundamental catalyst and a technical setup to align together.

That strengthens my thesis on my de treat and swing trades, both our overnight swing positions and the ones that takes a few days or a few weeks. Okay, so what kind of fundamental catalysts are we talking about as a criteria here? It could be something along the lines of positive earnings, new contract deals or new partnerships. To sum it up, basically, it's any positive news that could potentially increase the company's earnings short term. Remember the stock price increase or decrease is based on the company's future earning potential.

So if a company has a brand new contract to sell at Walmart, that's extremely bullish, because Walmart is a giant retailer in North America that everyone goes to okay, actually, just in the u.s., I don't really like the Walmart in Canada, it's pretty sketch. I prefer the Great Canadian Superstore and, of course, Whole Foods which is owned by a AMZN but anyways a partnership with Walmart or any other big retail giant would mean that this company's earning potential could drastically increase short term. So this will be a positive, fundamental catalyst. Another example of what I like as a criteria number three for this overnight swing, is sector, sympathy or sector hype.

I've talked about sector sympathy was sector hype in a few of my past. Videos on the channel, but basically if a stock is part of the hot sector right now in the daily chart, is technically bullish according to criteria one and two, then that will be a prime candidate for an overnight swing. Some good examples of the sector hype in the past few years are the shippers bubble in 2016 blockchain sector hype in 2017 and also cannabis stocks in 2018 and knighting. So looking at SDC the stock from our example earlier, we already know it meets criteria.

One and two, but doesn't meet our criteria three, so this is where a quick, fundamental research comes into play. Looking at my Ben Zynga news research tool, we can see that SDC smiled direct Club has recently launched a new line of oral care products at Walmart. So that's big news, so this stock would be a good candidate for an overnight swim position. On January 15th, I usually like to enter my swim position in the last one hour of trading between 3 o'clock to 4 o'clock p.m.

Eastern Time, which is perfect for those trading part time, because that gives me the time to look at how the stock is trading. Intraday and whether it's holding strong on the daily, if it's closing strong and it meets all three criteria that we just talked about, then I won't loan the stock near the end of the day and sell it into a potential pre market gap up or a morning Spike it's funny because I actually messed up my very own SDC swing trade. I entered a little bit too early on January 6th and got stopped out, so I actually took a loss on that swing. Trade only to see the trading plan worked out perfectly a few days later.

I am NOT a perfect trader guys and I probably never will be. This is just a reality of day trading, I'm human after all, but the hot stock I'm gon na be talking about. Next, it's a perfect example of a swing overnight that worked out perfectly and the stock is Pinterest. So, on January 14th, when I took the swing position on Pinterest, we can see that the stock is closing around 21 50s on the datee.

Pinterest is an IPO stock from 2019, so it doesn't have a whole lot of charts history, but we can see the closest resistance level on the daily is at the close of this candle right here around 21 28, which is also the daily gap. Next, let's look at the volume: is there an increase of volume on the daily charts and you can see that on this day, Pinterest traded 35 million in trading volume? So that's a lot higher than a daily average of 11 million shares. Now fundamentally, Pinscher stock has an amazing news from a market data report showing that the platform has now served past snapchat as a third biggest social media platform in the US, with nine percent increase of year-over-year user growth. You might be thinking now.

All this platform has a little bit more users now big deal. I just got two more dollars in my limbo funds to which, let's be real here, it's a much bigger deal, but the key is Pinterest is a social media platform. So just like Facebook and YouTube the key to these companies revenue growth is the active user growth. Just like this channel, the key to see more videos with bad jokes they'll actually help with your trading is, if you remember to gently click.

The like button at the bottom of the video doing so will help push the videos out to even more traders like you and I, and we found them helpful, I'm sure many others will as well. It's a win-win-win situation for all of us, so this Pinterest stock meets my criteria of a bullish data, charts, increase of daily average trading volume and also a fundamental catalyst, and so that's why I bought the stock at 2160, I'm January 14th sold half into the morning. The next day at 22, 40s and the rest of it at 23, 80s on January 17th. Now is this swing overnight strategy going to work 100 %? Absolutely not.

Nothing is a hundred percent guaranteed and day trading. But if you follow the three criteria I mentioned, the chances of the overnight swing set up working out is dramatically higher and again it's a perfect setup with those trading part-time, with a small account on the PDT. Now, if you found this swing overnight, slow strategy, helpful, there's even more coming soon make sure to subscribe and R in the notification bell, because next week I'll be going over another one of my favorite long strategies, that's really suitable for those trading part-time with a small Account under PDT we're just getting started here. My friends, thank you guys for watching.

As always and the humble trader and I'll see you guys next week.