in the day and early in the week, but to sell off later in the day and later in the week. The reason, John said, was because if a day trader is losing money and the market weakens, he wants to close out his position before the end of the session and start again the next day with a clean slate. And, as the week goes on, a slightly longer-term trader often wants to close out his losing position before the weekend. That way, he doesn’t have to carry a debit balance on his margin account for two days when the market is closed and he has no chance of getting any price movement. But in a bull market, said John, a trader is absorbed with making money and is driven by greed rather than fear, so rather than bail out, he’ll ride the bull overnight or over the weekend.
Flint, Paul . Pit Bull: Lessons from Wall Street’s Champion Trader (p. 248). (Function). Kindle Edition.