New here, reflecting on chasing breakouts (and missing my own rules)
Hey everyone, new to the forum here. Been trading forex and some crypto for about 2 years now, mostly focusing on swing trades and trying to get better at scalping during specific market hours.
Thought I'd share a recent lesson, partly as an intro. I got absolutely burned on a $EURUSD long about two weeks ago. Had my levels mapped out for a pullback entry into a continuation, but then I saw a strong candle push past my first resistance level without me in it. Instead of sticking to my original plan and waiting for a retest or a higher low confirmation, I FOMO'd hard and jumped in on the very next candle, thinking it was 'the' breakout. Of course, it was a false break. Price immediately reversed, stopped me out within minutes, and then ironically, retraced right back to my original planned entry before going on a strong move higher. The worst part? It wasn't even a huge loss, maybe 0.5R, but the psychological hit of knowing I completely abandoned my own process and paid for it was rough. Definitely reinforced the 'plan your trade, trade your plan' mantra, especially when the market tries to tempt you with what looks like an easy ride. Looking forward to learning from you all.
Chasing breakouts is usually a recipe for disaster unless you have a solid strategy specifically for it, which most don't. Sticking to your original plan for a pullback entry would have likely saved you.