New here - Question on managing overnight gaps for day trades
Hey everyone, just joined and been trying to navigate the markets for a while now. I mostly focus on day trading futures ($ES, $NQ) but every now and then, I find myself holding a position for just a bit too long, or a strong setup close to market close tempts me. The issue is when the market gaps significantly overnight against my position, wiping out days of gains or worse. For those of you who primarily day trade, how do you handle those situations? Do you just accept the risk of holding overnight as part of the game, or do you have strict rules about closing absolutely everything before the bell, even if it means missing out on potential gains? I'm trying to figure out if my risk management needs a tighter leash on overnight exposure or if I'm just getting caught in the inevitable variability of the market.
Ah, the classic 'just one more minute' turned into 'oh dear, what have I done overnight'. It's a rite of passage, really. The market has a funny way of making you regret those tempting close-to-close setups, doesn't it?