If you’ve been trading for a while, you’ve probably heard something like this:
“Markets are random during the day.”
Sounds dramatic, I know — but the data backs it up. And once I understood this, it changed the way I approached almost every trade.
Here’s the short version:
If you had bought the S&P 500 every day at the close and sold the next morning at the open — not holding all day, just overnight — you would’ve captured nearly all the index’s gains over the past 30 years.
Now flip it.
If you bought the open and sold at the close? You’d have made… nothing… practically flat returns over time.
That’s the overnight edge I want you to understand — because most traders are completely ignoring it.
Why Does It Work?
Because the market digests information when it’s closed. Earnings, economic reports, geopolitical headlines — all of it tends to land after-hours. By the time the opening bell rings, the big move has already happened.
That’s why I love using fade setups and overnight options. Especially when markets get stretched to the downside — like after two or three red days in a row — strong stocks often snap back overnight, not during the next trading session.
Instead of sitting at your screen all day chasing 5-minute candles… you could enter at 3:55 p.m., sleep on it, and exit at the open with a defined plan and less noise.
Now, this doesn’t mean every overnight trade is a winner. It’s not magic. But when you combine this edge with a strong setup — like a bullish fade trade on a stock pulling back within an uptrend — your odds go up.
And that’s all we’re doing in trading: stacking edges.
Here’s what I do:
✅ Build your watchlist during the day.
✅ Enter only when your setup is there.
✅ Use scanners or alerts to save screen time.
✅ Trade the close. Sell the open. Repeat.
The best traders aren’t grinding for eight hours a day. They’re using proven patterns and timing to do more with less.
And the overnight edge is one of the cleanest, most repeatable tools I’ve found.
Use it.
Graham Lindman
Graham Lindman Trading
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*This is for informational and educational purposes only. There is inherent risk in trading, so trade at your own risk.
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