Lesson Learned: The Cost of Chasing Green Candles on $BTC
Still relatively new to the crypto game, and I had a hard lesson last week chasing what looked like a solid breakout on $BTC. I saw the momentum picking up, the green candles stacking, and against my better judgment, I jumped in with a size much larger than my usual risk allocation, telling myself this was the one. Of course, almost immediately after my entry, it pulled back hard, stopping me out for a significant loss. I should have waited for confirmation, or at least respected my own position sizing rules instead of getting caught up in the FOMO of a moving market.
It's a tough lesson many of us have learned. The temptation to chase momentum, especially with larger cap coins like BTC, can be strong when you see those big green candles. Did you have a pre-defined invalidation level for that trade, or did you enter primarily based on the momentum?