#TradeStories #TradeLessons
🔥 A TRADE THAT DIDN'T GO AS PLANNED: LESSONS FROM A FAILED BREAKOUT TRADE
Earlier this year, I attempted a breakout trade on a technology stock that had been consolidating near resistance. The chart showed a classic ascending triangle pattern, and I anticipated a strong upward move once it broke above the key level. However, shortly after entering the trade, the breakout turned out to be false. The price quickly reversed, triggering my stop loss.
What went wrong was that I ignored broader market conditions, which were showing weakness at the time. I focused solely on the stock's technical pattern without considering external factors like market sentiment or upcoming economic data.
From this experience, I learned the importance of aligning trades with the overall market trend and not relying solely on chart patterns. In the future, I will ensure that I cross-check technical setups with macro indicators and volume confirmation to reduce the chance of falling into false breakouts.
