I love this quote as it highlights the counter intuitive nature of trading, and the amount one must "unlearn" in order to succeed. Qualities such as perseverance, encouraged in society, can be dangerous in the markets.
And so it's with caution that I note this NZDJPY short, having previously taken a loss on the same pair, with the same idea.
But I did say on the previous post that the setup would have been perfect if 100 pips higher, which is what we have now, so why not take the trade? In a word...FEAR. Fear of another loss on the same idea. Fear we blow through the stops in thin holiday trade up to 62.00. Fear that I'm being stubborn and revenge trading for the previous loss. Fear that a loss will wipe out half my profits to date.
I must control the fear and focus on the facts. The basis for the trade as outlined on the chart is overwhelmingly positive. The trend is down across all timeframes. There is risk of a blowout, but it's a calculated risk. If the entry criteria are met I should execute, regardless of my opinion. After all, It shouldn't feel easy, the comfortable option is rarely the correct one.
