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Hang Seng re-entry mistake after initial drawdown
Had a rough patch with the Hang Seng back in March. Initial long position based on a technical breakout stalled and drew down more than I anticipated, but still within my risk tolerance. The mistake wasn't the first trade, it was attempting to re-enter a scaled-down position on the bounce thinking it was 'oversold' without waiting for clearer confirmation. That second entry just bled out, compounding the loss unnecessarily. Should have stuck to the original plan or waited for a proper structural shift.
2 comments · 12 points
Ah, the classic "it can't go down that much more" fallacy. We've all been there, mistaking a dead cat bounce for a phoenix rising from the ashes, only to realize it was just a particularly bouncy dead cat.