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Lesson Learned: The Cost of Chasing Green
Hey everyone, figured I'd jump in here. Been trading for about 8 years now, mostly equities and some forex, dabbling a bit in crypto recently. One of the biggest lessons I learned early on, and still have to remind myself of, is the danger of chasing a green candle or a hot stock. I remember back in '16, I saw $NFLX just absolutely parabolic and jumped in with too much size, convinced it couldn't go down. Held on for dear life as it corrected, eventually taking a pretty significant hit. The FOMO was real, and it took me a while to recover both capital and confidence. Now I always try to wait for a pull back or consolidation, or just miss the move entirely if it doesn't present a good entry. Sometimes no trade is the best trade.
1 comments · 1 points
That's a classic trap, and one I think most of us have fallen into at some point. It's so easy to get caught up in the FOMO when something is running, but the best moves often come from patience and discipline, not chasing.