so there are thousands and thousands of different strategies to trade in today's
market one of those strategies is the overnight gap or play I'm going to break
down some of the key things I look for when entering an overnight gapper trade
so you might ask the question what is an overnight gap are that overnight gapper
is basically you're buying stock today with the hopes that tomorrow morning is
going to gap up on big news or the continuation of the move that's
happening today moving onto the next morning having that pre market a big
move gapping up and then moving higher from there and we're looking for is
stocks with low float stocks with high interest of short stocks with possible
news so key things to look forward looking for low float socks looking for
stocks that have possible news looking for stocks that have a very bullish
clothes so a very bullish clothes is a good sign it means a lot to we're buying
it means that people are trying to get in with our clothes expecting that news
is happening the next day it's the idea that everybody else is kind of also
playing the same strategy looking for that overnight gapper so you're looking
for stocks with a strong clothes that's kind of the one criteria looking for a
stock that has a nice strong clothes sometimes you'll have stocks that have
kind of a fade into clothes the next morning they'll gap up but the real key
indicator of a very bullish overnight gapper is going to be a stock that has a
strong clothes and then also a lot of times you'll get a big move after hours
another thing to look for is you're looking for stocks that have possible
news you'll see people talking about rumors
normally biotech stat possible drug news possible trial news looking forward to
me like that partnership news you'll see people kind of talking about it normally
these stocks that have news coming people kind of get an idea when the news
is coming out they kind of have a game plan this company has a trial ending
they might have some news soon or they're waiting for FDA approval
something might happen on this stock and you can see here showing you some of my
results trading some big bio text at the beginning of this year the night before
the big move up a hundred two hundred percent on some of these moves some
really big moves NBC in was a big move I got in right before clothes a day before
it ran up a little bit after hours within pre market news came out they got
a big deal with the insurance company ended up gapping up a 200% huge move
over there low float a lot of short interest big short squeeze there and
gapped up and you can see I made a lot of profit they're only on 500 shares
that's one of the things also that I suggested
people that have a small account when you're trading with a small account you
don't need to buy a lot of shares of these small companies it's the idea that
you're going to buy you know 500 shares of a 50 cent company 250 bucks kind of
risking 50 bucks for the possible gap up the next morning looking for these
stocks have a lot of news and a lot of momentum we're not just buying stocks
that have no volume nobody's talking about going on social media looking on
Twitter stock twits all these different websites kind of figuring out what
people are talking about obviously don't go and just buy any stock that you see
people talking about you want to figure out what stock has some good potential
for news another thing that I noticed while trading this strategy is looking
for stocks that have no news and that run up into closed a lot of times what
happens is insiders or people will leak information that a stock possibly has
news coming out you'll get a big spike in volume big spike in price right
before clothes for no reason there'll be no reason at all that a stock ran out
big and you'll get that running to close all of a sudden it'll jump up and then
the next morning you get news or you get a press release and boom the stock flies
again up another 100 200 percent again we're looking for stocks at a low flow
possible large short interest looking for stocks with news looking for stocks
with momentum we're not just buying any cheap stock that's down and not moving
around looking for some kind of indicator that possibly news might be
coming that something is going on and I guess said looking for a bullish clothes
looking for some momentum into clothes looking for unusual volume looking for a
stock that's maybe ran up 100 cents a day on really no volume and then waiting
for the next day getting a stock that doesn't have a ton of volume today but
also makes a big move so you're looking for these kind of indicators looking for
stocks that have momentum looking for stocks that have news that have a buzz
you will find the buzz on certain websites you know going on Twitter going
on stock so it's kind of reading everything looking over all these
different stocks and getting an idea of what possibly might gap up the next day
so you're kind of making a bit buying this stock today before close you might
buy it for $0.50 the next morning it might open up at $1 $10 $20 30
on the idea these stocks are going up like I said we're not as buying any
stock that's out there we're not just bonding any penny stock it's not just
I'm going to go out and buy every stock that possibly might gap up on all the
different websites you're researching you're kind of getting
ideally okay why is this knocked up what's going on before you know it you
know you might go on Twitter somebody else is talking about to go well hey I
just looked on the SCC's website the company just filed a 8k or they just
they just filed some press release that's unreleased so far and this stock
might go up big so we're looking for these opportunities like I said you're
in look for people that kind of have an idea there's always going to be somebody
who has an idea before everybody else it's just about looking for those stocks
that have a possible idea looking for possible trade ideas looking for stocks
that go up big one of the reasons that I use Robin Hood for this strategy is I
can buy 500 shares no commissions hold it overnight no fees in my DAP next
morning if it doesn't move I just sell it dump it lose a little bit and then
move on kindly for the next gap or I don't just hold and wait and pray I'm
not buying this stock today at 50 cents then tomorrow the gaps down at 40 cents
I'm not going to keep holding it I'm going to cut my loss and move on and I'm
going to look for the next move that's kind of a game plan here you're looking
for small loss big return some of these big gap is having 100 200 300 percent
moves if you can get in there before the big big move then you can really profit
big off a small amount of money that you invest so people who have small accounts
this is great for those kind of people people who can't day trade people who
have Robin Hood you can use your Robin Hood account to buy a small amount of
shares of some crappy company hopefully looking for that move higher if it has
some news that day if it jumps up big in the middle of day out of nowhere that's
another good sign looking for stocks that have unusual price action unusual
volume a lot of times I've seen these companies that run up really big all of
a sudden they'll just jump out of nowhere the day before they'll jump up a
little bit they'll kind of get stuck there and they'll kind of move up higher
and higher into clothes in the next morning get a PR comes out and boom the
stock goes up 200% so that's kind of what you're looking for looking for
stocks with momentum price action unusual volume and buzz around them
stocks that have something going on like I said don't just go buy any stock that
is cheap that looks like it might go up the next day they look for stocks have
bullish indicators looking for stocks that might move they say that's the
overnight gap or play it can really pay off big if you get lucky and you can you
get on a good roll I got on a pretty good roll for a while I grew up $2,000
to $4,000 in about a week trading these overnight gapper
with Robin Hood just buying socks and for clothes and a holding overnight
selling them the next morning for a big gap up and making a lot of profit there
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