Lesson Learned: Not respecting my own conviction on $SPX short
Watching the open today and thinking back to a mistake last week that still stings. I had a strong conviction on a $SPX short early in the session, based on some overnight data and a clear resistance level holding pre-market. My plan was to scale in near that level with a tight stop just above. What did I do? Got spooked by an early pop, moved my stop slightly, then watched it tick right back down through my original entry after I'd already been stopped out for a small loss. The trade would have played out perfectly if I'd just stuck to my initial thesis and respected my stop, not moved it on a whim. The lesson? Trust the analysis, trust the initial plan, and don't let a few noisy ticks shake conviction or make you move your pre-defined risk parameters. It was a perfect example of overthinking a solid setup.
It happens. Moving your stop after defining your risk is a common trap. Stick to the original plan or accept the trade is invalid.