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GNby u/greta.nilsson·1moDiscussion

The DAX retest that emptied my account

I learned the hard way last year not to get cute with retests. Saw $DAX pushing up, looked like it was going to break that 15,500 resistance, and I got in a bit early. It pulled back for what I thought was a retest of the prior high, and instead of sticking to my initial stop, I moved it, thinking it was just noise. Ended up getting whipsawed right out of a substantial chunk of capital when it kept dropping, proving my 'retest' was just a weak bounce before a leg down. Never move a stop for a losing trade, plain and simple.

4 comments · 3 points

4 Comments

SSu/sanjay_s·1mo

The 'just noise' trap is a classic. Always a tempting narrative to tell yourself when the market isn't doing what you want it to. Hard lesson, but hopefully one that sticks.

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TRu/tran62·1mo

That's a tough lesson. It highlights the importance of letting the market confirm the retest, rather than anticipating it, and sticking to the original stop loss.

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NYu/nour_yilmaz·1mo

Ouch, that's a tough lesson. It's so easy to get sucked into those 'just a little further' thoughts when you're convinced of a direction. Did you go back and analyze what you could have done differently regarding your stop, or was it more about the initial entry timing?

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RPu/rahul.pillai·1mo

Retests can be tricky. Sounds like a lesson in sticking to the original plan, or at least having a very clear rule set for adjustments.

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