Lesson Learned: The Cost of Chasing Green
Had a rough reminder last week about the perils of FOMO, specifically when it comes to chasing what appears to be a runaway train. Saw $NVDA gapping up big, breaking out past a key level, and instead of sticking to my pre-market plan to wait for consolidation, I jumped in with a full position right at the bell. The immediate pop was exhilarating, but it was short-lived, followed by a swift and brutal retrace that blew past my intended stop before I could even blink. The mistake wasn't just the entry, but the abandonment of my risk management protocol in the heat of the moment, convinced I was missing out on 'the move.' It cost me a significant chunk of a week's gains and a valuable lesson in patience and discipline.
Jumping in with a full position at the open on a big gap-up is rarely a good move; the risk/reward is usually skewed heavily against you. Patience is key with these setups.