I dismissed this notion as nonsense, but now realise it might be true, because the same applies to trading.
Last Friday I entered the AUDCAD short after waiting most of the week for price to reach my level. I thought I'd been pretty patient, but something wasn't right, and I knew it...I just didn't want to accept it.
Daily ATR had not been reached, TL resistance had moved higher, the harmonic "B" point was weak, NFP was looming, and I entered 25 pips lower than my intended level. The trade was at best 6/10, and while mediocrity might get you through university, it will get you slaughtered in the forex market!
I was inadequately prepared, execution was poor, and as a result I was a ball of stress from the moment I entered the market. Something was nagging at me, I knew I was not being honest over the quality of the setup. Although I realised this shortly after entry, it still took time to act. It's not easy to distinguish healthy anxiety from legitimate stress related to inadequate trade foundations. One must also deal with the fear of regret, fear that although I "know" the trade is not good, if I close and it subsequently moves in my favour I'll feel like a dick.
But fear of regret is a zero sum game. Sure, I might feel regtret if I close and price moves in my favour, but the same is true if I do not close and price moves against me. The two cancel each other out, so do what you feel is right and move on.
With this in mind I covered the short postion on the positive CAD news prior to NFP. I feel lucky to have escaped with just a scratch (-4 bps).
