Have you ever fallen for this trap?
During Thursday night’s Asia session, I shorted the rejection of CP, targeting the prior session’s swing low near 31,100, which also aligned with a large resting order on Bookmap.
Unfortunately, I closed this trade with only $700 profit.
Because I overlooked one major detail… Thursday’s high had not yet been swept.
Instead of selling off, price reversed higher and took that liquidity during Friday’s pre-market. That move convinced me the market had turned bullish, so I abandoned my original bearish plan.
Think about how absurd that is! I was bearish before the buy-side liquidity was taken, then became bullish after it was taken.
The market actually tricked me, but this is what happens when I become complacent and don’t write down a solid plan before the session. Things start going well, I convince myself that I don’t need one and then I make the most absurd mistakes.