How lack of attention can ruin your entire trading day
Today I realised one important thing about trading. It’s very important how you start the day and how you gauge market sentiment at the begining of the trading day. Many times the same trend goes on the entire session. If you are wrong in the morning, you may not be able to adapt/accept that your analysis was wrong and you will lose over and over again.
Ability to adapt and get in tune with the market is a crucial element for traders. You have to become a market chameleon.
So, what I did today was that I made a fast analysis, without thinking too much about what’s happening. I was long on all three pairs (EURUSD, GBPUSD and EURJPY). The trend was actually bullish, but I didn’t pay close attention to a few other important facts:
- Friday – Fridays tend to usually move prices against the weekly trend, due to profit taking (last day of the week, some big guys close big positions in the market);
- Candlestick patterns at resistance – I did watch these, but I missinterpreted them. I wasn’t paying attention to what the market was telling me.
Let’s take this GBPUSD H1 chart for example:
Lesson learned!
