Yesterday I mentioned that GBP/JPY was on my radar for a short position.
Price indeed made some pretty good downside moves from the London open, but I wasn’t in the trade. Why?
Because it simply did not fulfil my requirements at first and since price has already ran, I wasn’t interested in chasing after it.
It is very common advice that you should never chase after a trade, as a result of the FOMO syndrome – the Fear of Missing Out.
It is true.
When one goes full on FOMO, the trader puts himself in a scenario where he is not trading in an optimal manner, instead choosing to settle for lesser confluences in his favour and a panicky heart hoping that price will go his or her way.
There is a saying that you “shouldn’t give up the entire forest for one tree”.
Similarly in trading, you shouldn’t get too hung up over that one trade that ran because opportunities are aplenty if you know how to look for them.
It doesn’t matter if the trade that you missed ended up to be a 3R or -1R profit or loss.
There will be another homerun trade another day.
Its all about learning how to let go and think in perspective.
Apart from this, I took a short position in CAD/JPY which yielded a small but reasonable gain. I was anticipating a breakout to the downside but the market was extremely stubborn and unwilling to make a decisive move.
This concludes 3 profitable weeks in a row with a gain of +9.6%.
You’ll never go wrong with taking profits at uncertain junctions, either way you’re making a winning move with profits in your pocket.