a automatic watch cannot be over wound due to the 'slipping' clutch present in most automatic watch.
according to some watch makers, when the watch is completely stopped, it is better to hand wind the watch. some people tend to shake the watch, some people tend to hold the watch in your hand and twist the wrist. this will give the 'rotor' some energy to start oscillating and slowly wind up the watch when worn. the above 2 methods of shaking and twist the wrists are not recommended.
one of the possible purpose of hand winding is to give the watch the inertia to coil the spring up so that after you put it on your wrist, it will continue to wind the watch.
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