EM FX: Don't chase the rally, especially when you're late

Biggest mistake I made last year was chasing the $MXN rally after it broke 18.00. Had been watching it for weeks, knew the carry was attractive, but hesitated on entry. Once it really started moving, I felt that FOMO kick in and piled in, thinking I was still early enough for a quick swing. Of course, it wicked right up to 17.50, I got in near the top, and then it bounced off that level and spent the next few weeks consolidating, taking out my stop.

Lesson learned: If you missed the initial move, resist the urge to jump into an extended rally. There's always another trade. Chasing momentum when you're already behind the curve just increases your risk and puts you in a psychologically weak position. Better to wait for a pullback or move on to the next setup.