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 hits two-day highs near 1.1820
EUR/USD picks up pace and reaches two-day tops around 1.1820 at the end of the week. The pair’s move higher comes on the back of renewed weakness in the US Dollar amid growing talk that the Fed could deliver an interest rate cut as early as March. On the docket, the flash US Consumer Sentiment improves to 57.3 in February.
GBP/USD reclaims 1.3600 and above
GBP/USD reverses two straight days of losses, surpassing the key 1.3600 yardstick on Friday. Cable’s rebound comes as the Greenback slips away from two-week highs in response to some profit-taking mood and speculation of Fed rate cuts. In addition, hawkish comments from the BoE’s Pill are also collaborating with the quid’s improvement.
USD/JPY drops back below 157.00, as focus shifts to Japan snap election
USD/JPY is back in the red below 157.00 in the Asian session on Friday. The Japanese Yen recovers ground against the US Dollar amid some profit-taking ahead of Japan's snap general election on Sunday. The preliminary reading of the Michigan Consumer Sentiment Index report for February will be released later on Friday.
Editors’ Picks
EUR/USD: US Dollar to remain pressured until uncertainty fog dissipates Premium
The EUR/USD pair lost additional ground in the first week of February, settling at around 1.1820. The reversal lost momentum after the pair peaked at 1.2082 in January, its highest since mid-2021.
Gold: Volatility persists in commodity space Premium
After losing more than 8% to end the previous week, Gold (XAU/USD) remained under heavy selling pressure on Monday and dropped toward $4,400. Although XAU/USD staged a decisive rebound afterward, it failed to stabilize above $5,000.
GBP/USD: Pound Sterling tests key support ahead of a big week Premium
The Pound Sterling (GBP) changed course against the US Dollar (USD), with GBP/USD giving up nearly 200 pips in a dramatic correction.
Bitcoin: The worst may be behind us
Bitcoin (BTC) price recovers slightly, trading at $65,000 at the time of writing on Friday, after reaching a low of $60,000 during the early Asian trading session. The Crypto King remained under pressure so far this week, posting three consecutive weeks of losses exceeding 30%.
Three scenarios for Japanese Yen ahead of snap election Premium
The latest polls point to a dominant win for the ruling bloc at the upcoming Japanese snap election. The larger Sanae Takaichi’s mandate, the more investors fear faster implementation of tax cuts and spending plans.
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