Before I begin I want to thank Roland Wolf for the invaluable info on his video lessons, profit.ly responses, etc...

So, I got accepted onto margin last week so now I can only day trade 3x a week. This is plenty for me as I never day traded more than once per week but still, I feel like learning overnight holds is very important so I've been studying Roland and here are the requirements for an overnight hold according to him:

1st Green Day & Big % Gainer - Traders will check the big % gainers for potential plays in the next trading day so it is important that the stock appears on most scanners. 1st Green Day is important as you don't want to be chasing a move already up a ton but rather sell into latecomers buying. Roland says he will rarely buy a stock to hold on the 2nd Day.

Good Catalyst - You want great news to be able to propel a stock over resistance levels. The type of news good enough to make this happen can change because of market conditions, now all you need is a blockchain PR lol. Sometimes stocks can breakout on no news if they are in a hot sector (lot float, cannabis, etc..) You get the point, catalyst + price action = profit.

Good Volume - Volume is also what can propel a stock over resistance levels and what more accurately says if people are paying attention to the stock or not. This can tell the difference between strong and weak stocks so watch it wisely.

Closing Strong - Also a good indicator of a further move, meaning a continuation move. A strong close indicates strong momentum going into the next day and the odds of a gap-up are much better. Look for stocks that are breaking the day high and holding it on the last trading hour.

Little Overhead Resistance / Room to Spike - Obviously you don't want to be buying into a wall, make sure you can get some good % gains before the price gets close to a big resistance level. Always look at the daily chart.

Low Risk Of An Overnight Offering - Also why buying on the first day is important, if you are buying late you risk a financing happening while you are in a stock and a panic next day so you want to be very careful when buying a stock to hold. Go through their SEC filings and see how they are doing, if they still have cash great, if not, probably no play.

History of Spiking For A Few Days - You want to buy a stock that has been able to spike in the past for a few days if you are holding o/n. Be very careful of stocks that have a history of failed spikes. You want the maximum chance for a continuation move.

 

Hope this helped and if you have any tips or suggestions you might want to share, be free to comment below & if this post helped you be sure to give it a karma :)