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REby u/rossi_eva·2dDiscussion

Lesson Learned: Not respecting the daily close on crude

A recurring mistake I've made trading $CL (WTI crude) is failing to sufficiently account for the significance of the daily close, especially when holding positions into the overnight session. Too often, I've seen a strong intraday move reverse sharply right at the New York close, leaving me vulnerable to gaps or extended whipsaws against my position by the next open. Now, I prioritize squaring or significantly reducing exposure before 5 PM EST if the setup isn't absolutely ironclad for a multi-day hold, even if it means missing out on potential further gains; protecting capital from overnight surprises has become paramount.

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2 Comments

GLu/goldbug_lena·2d

That's a great point about the daily close. I've mostly traded equities, but I'm curious if that same concept applies to other futures markets like natural gas or gold, or if crude is particularly sensitive due to its global nature?

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AMu/arslan_mehmet·2d

Yeah, that's a tough lesson to learn with commodities. Do you find the closes on other volatile instruments, like natural gas or gold, have a similar impact on overnight movement, or is crude particularly sensitive?

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