Many traders believe every position must be closed before the session ends because holding overnight automatically creates unacceptable risk. The fear usually comes from price gaps, unexpected headlines, earnings surprises or changes in global markets while the trader is asleep.

Those risks are real, but the conclusion is often exaggerated. Holding overnight is not automatically reckless. What matters is position size, setup quality, liquidity, event awareness and preparation for an adverse move.

Overnight risk is easier to see

An overnight gap is obvious because the market may open away from the previous close. Intraday risk feels less dramatic, although sudden reversals and breaking news can strike at any time.

Closing everything before the bell may avoid some gap risk, but it can create ot ...