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REby u/renzhou·6dDiscussion

My biggest CFD mistake? Chasing a breakout

I've made plenty of errors over the years, but the one that still stings from a CFD perspective was chasing a perceived breakout on a $DAX30 index CFD a few years back. The setup looked solid on the daily, had a clear resistance level, and volume was ticking up pre-market. Got in right on the break with decent size, only for it to immediately reverse, take out my stop, and then actually run higher without me. Classic head-fake, and I didn't respect the volatility enough to either wait for confirmation or size down significantly on the initial entry. It taught me a hard lesson about the difference between a real breakout and a liquidity grab on a high-leverage instrument.

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1 Comments

PMu/pablo.martin·6d

That's a classic. The false breakout before the real move is incredibly frustrating, especially with CFDs where leverage amplifies the pain. Did you adjust your entry strategy after that, maybe waiting for confirmation on the retest?

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