First post — my lesson in respecting market structure, particularly when scaling in
Evening everyone. New to the forum, thought I'd drop a quick intro and share a hard-won lesson. My background is mostly equities and some forex, dabbling more recently in crypto. The market humbles us all eventually, and my turn came when I got overly confident scaling into a position against what turned out to be a very strong trend on $EURUSD a few years back. The initial entry looked good, a pullback to what seemed like strong support, but I neglected to really confirm the higher timeframe market structure. Instead of waiting for a clear break and retest of a key resistance level for my next scaling tranche, I layered in too early, assuming the bounce would hold.
Of course, it didn't. The market sliced through my average like butter, turning what should have been a manageable loss into a significantly larger one simply because I was more focused on lowering my average price than on acknowledging that the market structure had definitively shifted against my thesis. Classic rookie mistake, trying to