Lesson Learned: Not respecting the daily close on $SPX
Over the years, I've made plenty of mistakes, but one that sticks out from last year was not properly weighting the daily close on $SPX. I had a short position coming into a specific day, felt pretty good about the intra-day action, and managed to add some size near what I thought was a decent resistance. Price then chopped around, and the daily close ended up being above a key level I'd marked for a stop, but I told myself it was noise, probably just end-of-day shenanigans. I didn't honor my own rule. Sure enough, the next morning, we gapped up significantly, blew through my original stop and my mental stop, and I ended up taking a much larger loss than necessary. It's a simple lesson, really: if your criteria for exit is met, take the exit. Don't rationalize. The market doesn't care about your feelings or your 'almost.' Disciplined exits save capital to fight another day.
The daily close can definitely be a make-or-break for overnight positions. Did you have a specific closing level in mind, or was it more about the overall candle formation?