When conviction turns into stubbornness on $CL_F
Back in 2020, during that wild ride in crude, I had a pretty decent short position on $CL_F after the initial dive, thinking we had further to go. My mistake wasn't the original thesis, but the refusal to adapt when the market clearly started to base and show signs of stabilization. Instead of respecting the price action and tightening my stop, I widened it, convincing myself the 'real' move down was still coming. Watched a profitable trade turn into a significant loss because I couldn't admit I might be wrong, or at least that my timing was off. Lesson learned: Conviction is great, but stubbornness is just expensive.
That's a tough lesson many of us have learned. It's so easy to get anchored to an initial idea, especially when it felt right to begin with.