I often hold stocks overnight. I know many day traders who don't, but I do. These are the patterns you need to look for overnight trading. Subscribe here to get INSTANT alerts when I post a new video outlining my penny stock trading techniques: https://goo.gl/poGZTm
0:05 So a lot of people ask me, "What are the best patterns for overnight trading?" You don't necessarily want to trade intraday.
Well, that's a great question. You have to look at what kind of news, what kind of catalyst is going to spread overnight? I often hold stocks overnight. I know many day traders who don't, but I do. And I like to say, "Wait a minute. This has legs." Especially over the weekend, you know?
0:30 If a company has good news on a Friday, I like buying it on a Friday afternoon and trying to sell it on that Monday as the news or catalyst spreads over the weekend, you know? A lot of people, especially in penny stocks, aren't that meticulous. So, if a company has big news, they're not seeing it that hour, that day, and sometimes even for two or three days. So, if there's a weekend involved, the news can spread and people can see it on Friday night, Saturday, Sunday, even Monday morning, and then the stock will theoretically move in my direction um, on that Monday.
1:00 When I hold stocks overnight, it's usually for two reasons. First, I'll talk about stocks that go down. You can actually make money when stocks go down. It's called short selling. So, if a company that has been up for two days, five days, 20 days in a row, on the back of promotion, has a first red day where the momentum has changed and it's not gonna be up anymore. So, let's say it's gone up 20 days in a row and then one day it's down, like ten cents a share. It doesn't have to be the biggest red day, but it's a clear momentum shift. That is when I want to short the stock overnight.
1:30 Because usually, after that first red day, you get panicked on day two--usually a warning panic. Or sometimes on day three. It's a huge momentum shift and that's when I want to short overnight. Shorting is very dangerous lately so you have to do be careful. Sometimes a red day can just be a blip and then it goes right back up, in which case I would cut losses quickly. But especially if a stock is up on promotion and it's up for the wrong reasons. That first red day is a great, great indicator to short overnight.
2:30 TV shows aren't the brightest, they're not the best at finance so, if they're gonna feature some revolutionary technology, they're probably just gonna say, "This is an amazing technology," and they're gonna build it up as much as possible so that it's a ratings boom for their own TV show even if they're not exactly accurate. So, if you have a revolutionary technology that's getting widespread and mainstream press, you usually want to hold that overnight, as the idiots who watch TV and pay attention to these dumb media sources buy it too late. You can beat those idiots.
3:00 That's a great inefficiency in penny stocks. Also, if a company has good earnings, a penny stock very rarely will have good earnings. But sometimes when they do, it'll spike 20, maybe 30, maybe 50 percent in one day. And let's say if it closes near its highs, then theoretically more and more people are seeing the news and the stock is going higher, more people will hold it overnight and see the news that night or the next day and theoretically the stock will gap up the next day or spike. Sometimes even if it's not just people, there might be a latecomer, you know, mainstream media article, like on, I don't know, Bloomberg or Seeking Alpha. These different media sources that write about good news a day or two days later. Because again, just like the major media on TV, most people who write for a living, they're not the smartest. They're not the best paid. They're kind of lazy. They don't care, or they don't even think about writing an article right away when news comes out.
4:30 But I find that simple works very well in the stock market, so, click the link below if you want to learn more patterns. These are just three very, very basic, overnight patterns that I've learned the hard way over the past two decades. And I'll teach you many more patterns. Some patterns are more reliable than others, but, this has been Tim Sykes. I hope you enjoyed. Leave a comment underneath this video, too, if you wanna see more patterns and I'll make more videos about it if I get enough comments.
4:50 Hey, Tim Sykes, millionaire mentor, and trader. Thank you for watching my videos. I hope that they help you. I wanna share everything that I've learned over the years. You can check out more videos right over there. And also, click Subscribe so that you can watch all of these videos, get that knowledge, and become my next millionaire student.