Lesson Learned: The Cost of Chasing a Reversal

Today's watch list is relatively quiet for me, but it brings to mind a lesson learned from last month, specifically with $EURUSD. I was convinced we'd found a bottom after a sharp drop, and instead of waiting for confirmation, I front-ran the presumed reversal, adding size on every dip because "it had to turn around." The market, of course, had other plans. What started as a small exploratory position quickly morphed into an oversized bet against the trend, eating into unrealized gains from other positions and ultimately requiring a much larger stop-loss than my initial plan. It wasn't about being wrong on direction eventually, but about being early, over-leveraged, and not respecting the current market structure. The cost was significant, both financially and emotionally, and reinforced the need for patience and strict adherence to my entry criteria, especially when going against the prevailing flow. FOMO on a perceived bargain is a killer.