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Lesson Learned: The Cost of Chasing a Reversal
I've been thinking back to a significant loss I took on $EURUSD a few months ago, and it really hammered home the dangers of trying to call a bottom too early. Price had been in a clear downtrend for a couple of days, and I saw what looked like a promising hammer candle on the H1. Convinced it was the turn, I went long, thinking I was getting a great entry for a reversal.
The initial move up was promising, validating my bias, but it quickly faded. Instead of cutting it at my initial mental stop, I moved it down, then again, rationalizing that the
1 comments · 1 points
Yeah, that's a tough lesson to learn, and I think most of us have been there. It's so tempting to try and catch that exact reversal point, but it often ends up being a falling knife situation.