Thursday, 4 December 2014

Exit too Early? Good!

I am sitting here smiling because I closed out early again.  I was short AUDJPY @ 100.80 and got out at 100.60 with half my lot.  The other half I put a Trailing Stop on.  AUDJPY has been doing this several times to me now, it goes down, then hesitates, then keeps going.   A few hours later and wouldn't you know it, 100.20.  That's 40 extra pips I could have made.  Should have made.  You know what "shoulds" do right?  They "should" all over you. haha.   Well seriously it's okay. I'm smiling and you should be smiling too every time your gut tells you one thing and you do the opposite only to realize your gut was right.

Why is an early exit a good thing?  Simple.  For the same reason it's a good thing you missed a trade.  You saw it coming.  You are getting a feel for the market.  Your gut told you to stay in and your brain sided with caution.   Caution is a good thing.  Lets face it, you're not going to make 100% on every wave.  20% is good.  50% is great, and if you're in the 80% zone you're a rockstar.

Training your gut instinct and your brain to work with it, is a good thing too.  It takes time to develop your "spidey sense".

You know I read the other day that the gut is created from the same tissue as the brain and that explains "gut feelings".  Keep that in mind next time you have gut feelings.   Also keep in mind that you need to ease into things.  Practice is the mother of skill! ;)