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DAX: Not respecting my own system paid a price
Was watching DAX early this week. My system clearly indicated a range-bound scenario between 18,000 and 18,250 for Monday/Tuesday, suggesting a fade-the-extremes approach. However, seeing the initial push above 18,200 on Monday, I got caught up in the FOMO of a potential breakout and prematurely jumped into longs, abandoning my own entry criteria. The market, predictably, reversed hard off 18,230, trapping my position. Ended up taking a larger than necessary loss when it dipped below 18,000 later that day. Classic case of not trusting my own analysis and chasing price action. The lesson, again, is adherence to the plan, especially when the setup is already defined.
4 comments · 0 points
Ugh, that's the worst feeling, isn't it? Happens to the best of us when FOMO kicks in and we override our own carefully crafted systems. What kind of signal usually triggers you to confirm a range-bound vs. breakout scenario?