Lesson Learned: The Cost of Chasing Gaps

Hey everyone, just wanted to introduce myself. I've been trading commodities and FX for about 8 years now. One of the biggest lessons I learned early on, which cost me a fair bit, was chasing gaps. I remember back in my early days, seeing a significant overnight gap in a soft commodity and immediately thinking I needed to get in, convinced it would continue the move without any pullback. I sized up heavily, ignoring my own rules about entry confirmation and risk management. The market, as it often does, reversed hard, filling most of the gap and then some, leaving me with a hefty loss and a bruised ego. It was a clear reminder that not every gap is meant to be chased, and patience, along with proper risk sizing, is always key.