Funnily enough I was watching the replay of yesterdays (maybe Wednesdays?) webinar with Wayne last night whilst keeping an eye on USDJPY for a short opportunity. Wayne was talking about how new traders often take quick losses only to see price then go in their favour. Well, I’m not a new trader (I found Wayne’s FX Bootcamp webinars back in 2008 I believe before I started trading) but I still cocked this up.
Price broke down through Wednesdays lows and in doing so broke through a major daily structure level. All of my moving averages from the daily down to the 5 minute say sell, so I was waiting patiently for a setup.
Well, patience and a prior engagement got the better of me and at 18:00 I sold off of the 50% retracement in anticipation of my entry signal. I then went out feeling uneasy about my trade…
I kept an eye out via a mobile trading app and I saw price run 20 pips against me into my 30 pip stop loss, and as soon as price came back to break even I closed the trade for a 4 pip profit.
This morning I checked my charts to see that had I just waited this out, or better yet not entered until I had my signal, I would be in at least 90 pips profit. C’est la vie.