I lose money when I do not follow my strategy/system/rules.
Going into the Asian session on Wednesday, June 27, 2018, USD was bid the whole North American session. It was relentless, flow going one way. Desks must have been paid all day. I participated in the move. I had a bid the prior night in $USDJPY at 10.40 and kept it all the way to 110.14 to end the NA session. Equities rebound helped. Stocks were slightly in the green and the bid tone in USD was obvious.
Now, you would think after pocketing 74 pips on the day, I would go have drinks and enjoy my night. I didn’t.
I was tired and decided to put on a position. It was FOMO.
I was tired. I did not follow my rules. I am paying for it.
I bought $USDJPY into the fix. 109.94. The chart and system were not giving me any buy signal. My fingers wanted to buy. I felt the USD bid tone was going to follow through (fundamental bias). Technicals were saying no buddy, you are wrong. I ignored it. I bought, but thankfully really small since I want to sleep tranquilo.
Nonetheless, this is always a good lesson. $USDJPY is sitting at 109.82. I had the opportunity to take 2 pips an hour earlier from writing this post at 109.95/96 and I didn’t.
Where do we go from here? $USDJPY is currently at 109.87. I will keep an eye on the position for a bit. If it keeps above 109.85 decisively, I have a good chance of finishing this on the green. I will put a stop at 119.75 and look at the price action around 109.53 for another long.
The Flow Trader.