The siren call of 'just one more trade' on $GER30
I've been trading CFDs for a while, mostly indices and a few FX pairs like $EURUSD. One lesson that keeps needing to be relearned is the futility of chasing a loss. My worst day this year, by a significant margin, started with a fairly routine short on the $GER30. I got stopped out on a retracement that ended up reversing hard, which felt like a kick in the teeth. Instead of walking away, I immediately tried to re-enter, then re-entered again after that failed, convinced I was seeing a new 'opportunity' forming. Each subsequent trade was smaller, more erratic, and based less on my actual strategy and more on a desperate attempt to recoup the initial loss. Ended up overtrading my daily limit by a substantial amount and digging a much deeper hole than necessary. The issue wasn't the initial setup; it was the emotional response to a valid stop-out and the subsequent lack of discipline. The market doesn't care about your P&L for the day.