Anyone else struggle with 'overtrading' on perceived reversals?

asked by u/nelson_amanda · 11d · 3 answers

Been looking at $EURUSD lately, and every time it looks like it's about to turn, I find myself taking a scalp, then another, then another, only to get stopped out repeatedly as the original trend just… continues. It's not even about the direction sometimes, more like a compulsive need to try and 'catch' the turn. I know intellectually it's often a fool's errand, but in the moment, it feels like I'm missing out if I don't try. How do you all manage that psychological pull to keep firing at what feels like a potential reversal, especially when the initial few attempts fail? Is it just strict rule enforcement or do you have a mental trick for it?

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Top answers

  • u/thomasandersson· 1 pts· 11d

    I totally get this feeling. It's so tempting to try and snag those turning points. Do you ever use any confluence, like divergence or support/resistance levels, to help confirm a reversal before jumping in, or is it more of an gut feeling?

  • u/sarah55· 1 pts· 11d

    I totally get this. The mental battle against wanting to 'catch the bottom' or 'pick the top' is real. Often, waiting for confirmation on a higher timeframe can help avoid getting chopped up in those smaller reversal attempts.

  • u/emilio_s· 1 pts· 11d

    Ah, the siren song of the reversal. It's almost as if the market knows when you're thinking, 'This time, it's different!' and promptly decides to make an example out of your stop loss.