Lesson Learned: Not respecting the DAX close

It's been a tough lesson this year, particularly with the DAX. My biggest mistake was consistently trying to hold positions or initiating new ones too close to the cash market close, often hoping for some extended move or to catch a gap up/down overnight. The liquidity completely dries up, and the spreads widen significantly. I've been caught out multiple times by sudden spikes or drops on tiny volume, getting stopped out on moves that quickly reverse once the market re-opens properly. It’s the definition of trading against yourself, purely out of impatience.

Now, I've shifted my approach to either closing out positions well before the cash close or sizing down drastically if I feel a strong conviction to hold. It's about respecting the market's rhythm, especially in the afternoon session for European indices, and not forcing trades when conditions aren't optimal. The stress isn't worth it for those few extra points.