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Chasing green candles: why late entries bleed accounts

The candle you are buying is someone else's exit. Four habits that stop impulsive entries, and a number that puts missed moves in perspective.

Who is selling you the candle

A strong green candle is a sequence of buyers lifting offers. By the time it is big enough to pull you in, the early buyers are taking profit into your market order. Your entry is their exit. It is not manipulation; it is the order of events, and you are at the end of it.

Habit one: no market orders into a move

If price has already moved two percent in the last fifteen minutes, do not market in. Place a limit where a pullback should come. If the pullback never comes, the move was not yours, and missing it cost nothing.

Habit two: decide before the move

A plan written in the morning beats a brilliant idea at 2 a.m. Define the levels and the conditions while the market is quiet. During the move you are only allowed to execute what was written; you are not allowed to invent.

Habit three: measure your entries

In your journal, record how far from the local high each long entry was. If the answer is usually "at it", you have found the leak, and no indicator will fix it. Sizing down on late entries is a reasonable half-measure; not taking them is the real one.

Habit four: count the candles

There are roughly 35,000 fifteen-minute candles in a year. A good year needs perhaps a hundred of them. Missing a move is a non-event. Chasing one is the most expensive thing most traders do all week.

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