How To Trade NUGT & DUST When You Do Not Have Day Trading Buying Power: The “Overnighter” Hack


While it’s great to know which penny stocks to buy in 2018, various regulations and requirements can make it difficult for smart, but, smaller investors to day trade. Many small traders simply cannot day trade due to regulations requiring day trades to be limited to three round trip day trade transactions in a five day period for accounts with less than $25,000 equity.

There is a way to make money overnight trading stocks known as “the overnighter hack.” 

Say you find yourself in the position where you do not have $25,000 to day trade in a margin account used for stocks and futures. Assume you are trading with $11,000 to $12,000 in your margin account instead. You know which stocks to buy because you’ve already decided the stocks to invest in are DUST and NUGT. You now have two options to trade without buying power:

Option 1: Wait to buy as penny stocks  

You can wait to buy DUST or NUGT shares once the value is so low they become stocks under 5, or, even better, if they become stocks under 1. This may occur about three times weekly for each meaning you can buy 6 times in a week or about once daily (save Sunday).

Option 2: Trading without buying power

If you’re trading NUGT with $11,000 or $12,000 and make a 200 share limit, you can buy 50 shares when you reach the level you anticipate to be near the low of the day. If you choose correctly, you can add yet another 50 shares on the close. Should you choose incorrectly and NUGT falls further resulting in a small loss on your first purchase, you can then buy an additional 50 shares at lower prices and average down.

In either of the two situations, you are still left with enough money to buy an additional 100 shares in an attempt to bail yourself out of the rut if NUGT falls further over the subsequent days. If NUGT or DUST enter the stocks under 1 territory after you have invested your 100 core shares, then you can use the remaining funds in the account to buy as many of them at a very low, affordable price.

Once the market eventually recovers or definitely rises in strength on the following premarket, liquidate your stocks under 5.

If you buy NUGT and DUST as stocks under 5 without reaching your 3 trades within five days limit, you should try to sell out on the next rally and do a day trade. If you can’t get out that day, then you should sell out the following morning.

For example, if one were to play DUST with $11,000 or $12,000 making a 600 share limit, one could buy 50 shares three different times so long as DUST kept falling lower below the stocks under 5 classification. On the close, an investor could then decide whether or not to add more shares.

When one participates in day trading, the majority of trades should be completed by noon. Early trends often reverse later in the day, so, usually the smartest thing to do is to make money early in the day and then leave the markets alone. However, when position trading for the next day, the later in the day one can buy is usually a better choice. By waiting until later in the day, more information is revealed, the daily ranges have been established, and therefore, it is more likely one will have a chance to buy near the day’s low.

Stocks under 1 tend to appear late in the day on week days in particular – this is the time when investors have the opportunity to make money using “the overnighter hack.”

When the stocks traded are in a bullish trend, they tend to make their appearance in the morning. The chart patterns will quickly reveal how during a down trend, when the market drops 4 out of 5 days or 8 out of 10 days with the candles nearly all red, there is a strong likelihood they will open up the following day. This occurs because no one likes to “sell themselves into a hole” and, so, people put their sell orders above the previous day’s closing price.

This morning “pop” occurs often in up trends and even more frequently in down trends; the down trends is where you can make the most yield and essentially generate money overnight trading stocks! You will sell your shares out on morning strength, but, then buy stocks back later in the day on weakness. You’ll then be ready to catch the next morning pop and continue the cycle.

This is “the overnighter hack.” These can be called overnight trades and those traders who engage in this practice are called “overnighters.”

The overnighter hack allows investors to make money overnight trading stocks that’s equal to ,or, perhaps, even greater than your typical day trader.

Even those who do engage in day trading might make a majority of their money using “the overnighter hack.” Small traders using “the overnighter hack” can trade without buying power and make virtually all of their money by deciding which stocks to buy in the afternoon or during the aftermarket which they have determined have an extremely high probability of popping up the following morning. Then it is just a matter of selling out during the premarket the following morning and getting ready to buy back again to set up the next trade.  DUST or NUGT are trending as penny stocks to buy in 2018 and you can use this to your advantage by using “the overnighter hack.”


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