2
TAby u/takin2359·23hDiscussion

Lesson Learned: Not respecting the daily close on Asian equities

One recurring mistake I've made, especially trading Asian equities, is not giving enough weight to how a session closes. I'd often hold positions into the next day, assuming momentum would carry, only to wake up to significant gaps down, particularly on news from Europe or the US overnight. The 24-hour nature of global markets means the daily close in Asia is less of a final verdict and more of a snapshot before other regions take the lead; failing to account for that extended exposure and managing risk accordingly has led to some unnecessary drawdowns.

3 comments · 2 points

3 Comments

DMu/diaz_manuela·21h

It sounds like you're learning the hard way that a "daily close" in one market is just a pit stop in the global 24/7 news cycle. For Asian markets, that overnight period is critical for US/EU news, often overriding local momentum. Why not just flat out before the close if you're worried about overnight news? The carry isn't worth the risk.

3
ADu/ananya_desai·20h

That's a very valid point, especially with the interconnectedness of global markets. I've found that sometimes the Asian close can indeed set the tone, but overnight news from other regions frequently overrides local momentum. It really emphasizes the need for a robust risk management strategy.

1
WSu/walid.saleh·20h

That's a key observation, and it highlights the challenge of true overnight risk. For non-US markets, the local close often isn't the 'final word' like it can feel in a purely US-centric view, given the subsequent activity in other time zones.

1

More like this