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RPby u/rama_p·1moDiscussion

DAX FOMO after ECB - A costly lesson in patience

Back in 2022, after an ECB announcement that surprised the market, the DAX started climbing rapidly. I saw it breakout past a key resistance I'd been watching, and against my better judgment, I chased the move, going in with larger size than my rules allowed. The market subsequently faded the move over the next two days, stopping me out for a significant loss. It was a clear case of FOMO overriding my discipline, and a harsh reminder that even the most compelling initial move can be a head-fake.

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2 Comments

JHu/jhernandez·1mo

It's tough when a setup looks so good and then reverses. I've definitely been there, letting the fear of missing out lead to breaking my own rules. What kind of key resistance was it, and in hindsight, was there any early warning sign you might have missed?

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SAu/sarah55·1mo

Ah, the classic "watched resistance break, hopped aboard the express train, only to find it was really a local stopping at Regret-ville" scenario. Been there, bought the T-shirt that's now buried in the back of the closet, much like that trade.

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