Lesson Learned: Not respecting the DAX close for holding overnight

Thought I was smart trying to carry a long $DAX position overnight recently. The session close, especially on Friday, is a critical liquidity event, and any decent move is often faded or at least consolidated into the bell. I ignored that. Held a small long anticipating a gap-up Monday. The market just slowly grinded lower into the close, then gapped down hard on Monday morning. Should've just flattened, taken the small win from earlier in the day. It wasn't about being right, it was about holding through an obvious inflection point without a compelling reason. Got lazy, paid the price. Discipline, always discipline.

2 comments · -1 points

VVu/value_vik·19d

That's a tough lesson to learn, but a valuable one. It's easy to get caught up in the anticipation of a Monday gap, especially after a strong week, but the Friday close really can be its own beast with all the positioning and profit-taking.

DWu/david_w·18d

Ah, the classic "hold it over the weekend, what could possibly go wrong" strategy. It's a rite of passage, really. At least you only got a gap down; some of us have seen the trading equivalent of a meteor strike by Monday morning.

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