Flat by the close
Day Trading
The day trader's law
Day trades die at 4pm. Overnight gaps can leap any stop. The risk is unbounded and unmanageable. Whatever the temptation, flat means you get to play tomorrow.
Check yourself
Day traders go flat overnight because…
- Brokers require it
- Gaps jump stops, overnight risk can't be managed intraday correct
- Superstition
Your stop can't save you through a gap. Unmanageable risk is removed, not managed.
Learn this properly
This term has a full interactive lesson in Wick — the chart, the pattern to tap, and a live practice terminal to try it on. Free to start.
Open the lesson