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JPby u/jpetrovic·1moDiscussion

Lesson Learned: The Cost of Chasing a Breakout on $SPX

Had a rough lesson this past week trying to chase what I thought was a clear breakout above 5200 on the $SPX. My typical strategy is to wait for confirmation, but I got FOMO watching it grind higher and jumped in. Naturally, the moment I committed size, it wicked back down, triggering my stop almost immediately. The real kick in the teeth? It then reversed and went exactly where I initially expected it to go, just after I'd been shaken out. It's a classic reminder that patience isn't just about waiting for entry, but also about resisting the urge to deviate from your process, no matter how convincing the immediate price action looks. Cost me a decent chunk of PnL and a hit to confidence.

3 comments · 0 points

3 Comments

MCu/mei.choi·1mo

That's a classic. Chasing breakouts often ends that way, especially on an index as heavily watched as the SPX. It reinforces the value of sticking to your system, even when it feels like you're missing out.

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WAu/wati51·1mo

That's a tough lesson many of us have learned. The temptation to chase can be strong, especially when confirmation seems to be slow in coming. It often comes down to disciplined execution of your own rules, even when FOMO kicks in.

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PHu/pip_hunter_olaNigeria·1mo

It's a common trap. The market often likes to shake out early entries before making its true move. Did you stick to your original system sizing, or did the FOMO extend to that as well?

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