The charts and the price tickers are humming all the time. So why sleep if there is a trade opportunity? Maybe there is one. You go to your computer and you see one. But is your high profitability setup really there?
Perhaps there is a good setup awaiting you, but there’s a very good chance that you don’t want to miss out on being inside, even if it’s not worth it. If you’re lucky, the result is only a big waste of time. But it can also lead to very unnecessary losses.
Here are the some of the reasons for such moves, and what you can do to avoid them.
So, take a break.
And in more detail, allocate time for checking out what you did and for education, and separate time for trading. Make these time frames fit into your life, and not take over them. It doesn’t mean you’ll never lose again, but it will make your decisions much more rational, and each position will be carefully taken, and not impulsively made.
Perhaps there is a good setup awaiting you, but there’s a very good chance that you don’t want to miss out on being inside, even if it’s not worth it. If you’re lucky, the result is only a big waste of time. But it can also lead to very unnecessary losses.
Here are the some of the reasons for such moves, and what you can do to avoid them.
- Too much screen time: When you’re attached to the charts all day, and sometimes late at night when everybody is sleeping, you might start seeing things. Did you happen to bend some lines on the charts? Round some corners? If you see every small move as a big event, you might be missing out on the really important ones, and taking the absolute wrong decision.
- The feeling that you’re missing something: You’re not missing on anything if you miss out on a bad trade! The feeling that you must be in the market in order to gain may turn out absolutely wrong – you may lose your gains by being in the market at the wrong time. The need for action can turn into more losses.
- Now you’ll show them!: You think that after you’ve spent many hours by your screen and burnt some money on the wrong trades, you’ve learned and now you’ll take revenge. Well, you’re not only exhausted and overwhelmed by all your trades, but the feeling of revenge is also harmful and in many cases leads to final burnout of the account.
So, take a break.
And in more detail, allocate time for checking out what you did and for education, and separate time for trading. Make these time frames fit into your life, and not take over them. It doesn’t mean you’ll never lose again, but it will make your decisions much more rational, and each position will be carefully taken, and not impulsively made.
Editors’ Picks
EUR/USD hovers above 1.1800 as USD stabilizes
EUR/USD treads water above 1.1800 in the European session on Thursday. The US Dollar stabilizes, following the recent decline fuelled by concerns about the economic fallout from US President Trump's erratic trade policies, capping the pair's upside. All eyes now remain on Lagarde's speech and US-Iran nuclear talks.
GBP/USD extends recovery to near 20-day EMA as US Dollar weakens
The Pound Sterling holds onto weekly gains around 1.3565 against the US Dollar during the Asian trading session on Thursday. The GBP/USD pair trades firmly as the US Dollar remains under pressure due to uncertainty surrounding the United States trade policy outlook.
USD/JPY recovers above 156.00 despite cautious markets
USD/JPY is cutting losses to regain 156.00 in the European session on Thursday. The pair recovers alongside the US Dollar, but the further upswing appears limited amid hawkish BoJ commentary, looming intervention fears and risk-off mood, which continue to support the Japanese Yen. US-Iran nuclear talks take center stage.
Editors’ Picks
EUR/USD hovers above 1.1800 as USD stabilizes
EUR/USD treads water above 1.1800 in the European session on Thursday. The US Dollar stabilizes, following the recent decline fuelled by concerns about the economic fallout from US President Trump's erratic trade policies, capping the pair's upside. All eyes now remain on Lagarde's speech and US-Iran nuclear talks.
USD/JPY recovers above 156.00 despite cautious markets
USD/JPY is cutting losses to regain 156.00 in the European session on Thursday. The pair recovers alongside the US Dollar, but the further upswing appears limited amid hawkish BoJ commentary, looming intervention fears and risk-off mood, which continue to support the Japanese Yen. US-Iran nuclear talks take center stage.
Gold clings to gains amid sustained safe-haven flows ahead of US-Iran talks
Gold sticks to its modest intraday gains through the first half of the European session on Thursday, with bulls still awaiting a sustained move and acceptance above the $5,200 mark before placing fresh bets.
Stellar: Relief bounce fades as bearish undertone persists
Stellar is trading around $0.16 at the time of writing on Thursday after rebounding more than 8% in the previous day. Derivatives data paints a negative picture as XLM’s short bets hit a monthly high while Open Interest continues to decline.
Nvidia delivers another monster earnings report, and forecasts big things to come
It was another monster earnings report from Nvidia for fiscal Q4. Revenues were $68.1bn, smashing estimates of $65bn. Gross profit margin was a healthy 75%, up from 73.5% in the prior quarter, and the outlook for this quarter was monstrous.
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