Trading Is About Psychology

What differentiate amateur and professional lies great in psychology. It is the biggest thing that you must control in trading, for me it works to hold me from entering wrong trades. When it fails to hold, as a trader it means a great loss. Lose control of thy own self is the greatest shame.

My last short position on AUD/JPY was a good one but since I've entered only one position, I have only one profit target. It was only 50 pips shy to meet the target and the floating profit was +150'ish pips already. I would have taken the profit but maintaining the trade plan, I let it float before it rise slowly to my stop-loss.

This is where I lost control and it was full of impulse trading, trade after trade, even after squeezing out some pips later that night. In the end my newly freshened account balance shrunk. This is how to lose money in trading, "follow your emotion".

All that I'm doing now is forbid myself from entering any trade for today. I went off the office, cool off, figuring why I was so emotional and so on.

I'm now looking at EUR/CAD for it nice wedge formation on daily chart.