Lesson Learned: The Cost of Chasing Gaps

Just wanted to drop a quick intro and share a hard lesson from earlier in my career. I used to be obsessed with chasing morning gaps, particularly on earnings reports. I'd see a stock up 10-15% pre-market, convince myself it was "breaking out" and jump in right at the open, often with too much size. More often than not, it would either fizzle out after the first 15 minutes, or worse, reverse sharply as latecomers piled in and smart money distributed. My stop-loss was usually too tight for the volatility, or I'd move it out of hope, only to watch my capital get severely chopped. The biggest mistake wasn't just the entry, but the conviction that a pre-market move automatically translated into sustained momentum. It was pure FOMO, thinking I was missing the "easy money." Now I sit on my hands for the first hour and let the market show its true colors. That patience alone has saved me more than any single winner ever made.