Lesson from overtrading the $EURUSD range
Been trading forex for a while, mostly discretionary with some systematic overlays. One mistake that still catches me occasionally, and cost me a good chunk last quarter, was overtrading a perceived range in $EURUSD. Saw the pair bouncing off clear levels repeatedly, and rather than waiting for higher probability setups or confirmation of a breakout, I started trying to pick tops and bottoms more frequently. Ended up getting whipsawed multiple times as the range expanded slightly each time, stopping me out before the eventual reversal. It reinforced the idea that sometimes the best trade is no trade, especially when conviction isn't there for sizing up.
Definitely a common pitfall, especially when a range looks clear. It's tough to resist the urge to 'optimize' entries, but often the best move is to let the range play out or wait for a strong break. Do you have any specific rules you're looking to implement to avoid that overtrading in the future?