This seems to be less a "thread" than a monologue.
I will say, however, that I have been trading for the "gaps" as well as daytrading for over 15 years. And almost exclusively overnighting for the past 6 years. When it works, it is great. I made a lot of money when it did. I also gave back a bunch in the past year. Fortunately, I realized early on that it was working less and less over that time, and I cut back substantially. I traded intraday more and overnight less. If not for the daytrading, I would have been hurt pretty badly.
The thing is, in a trending market, you play the momentum. In a choppy market, as we have had, you have to take what the market gives you.....which isn't easy. Lots of work, lots of concentration. Small gains, smaller losses (hopefully).
When overnighting was working, I could withstand 50K per day losses knowing that I would make up for them "tomorrow". Now I risk very little on overnights. Two years ago, I thought nothing of taking 2-3 million (buying power) home overnight. These days, 500k is heavy for me. And most of the time I go home flat. It is true that I have not given great emphasis on technicals in quite a numer of years. Perhaps a mistake. But I have devoted much study to what works and what doesn't. Relative strength and momentum were working for years. That has ceased to be the case.
As far as averaging down (or up in shorts) that are against you overnight, seems to work lately....true....but there is a rather easy explanation for that (which is too many people are doing the same thing). So why bother? Why not be flat overnight, and buy the first down move when being long was your plan? (opposite on shorts). That way you don't have to make up your losses in your original positions?
