I have the same one, it's impossible to overfill, because it has a drain outlet just before the top. I don't think it matters anyway, as long as the needle is fully submerged.
Also a question to everyone, are these things that accurate? The difference between mine and the LFS's is about .04 which to me is quite a difference.
I'm sure they're not extremely accurate, but you definitely have to make sure there are no bubbles (even very small ones) stuck on the pointer...they throw it out of whack. Sometimes they're a real pain to get off.
From what I hear those are extremely inaccurate. You can pick up a simple bulb type at your LFS for less than $10. Just place it in a low current area and where the water line is, is what your SG is at. Ofcourse you can get a refractometer for like $50.
They are often inaccurate--but reliably so. If it's .04 off, then it will always give you a reading that's .04 off (though you need to know if it's +.04 or -.04). Having yours tested against a refractometer will give you that correction.
I recently bought a refracometer, now I wouldnt be without it but Im freaky when it comes to accuracy. Its useful for me when adding new stock and ensuring the salinity in the bag is exactly the same as the tank (and its easy to use).