Chasing the last few ticks on $NZDUSD - a costly lesson
I'm reminded today, watching $NZDUSD bounce off that 0.6150 level again, of a particularly irritating trade a few months back. Had a solid short from 0.6200, price was grinding lower nicely. Instead of taking profit at a perfectly reasonable support zone, I got greedy. Thought it had another 10-15 pips in it, convinced myself the momentum was stronger than it was. Moved my stop to breakeven, naturally, because that's what you do when you're feeling invincible.
Of course, it whipsawed, took me out at breakeven, then proceeded to hit my original profit target within the next hour. Could've been a decent 4R trade, ended up being a goose egg. The cost wasn't just the missed profit; it was the psychological hit of watching it play out exactly as I'd originally planned, after I'd interfered. A good reminder that sometimes the best trade is the one you let go of at a decent gain, rather than squeezing every last drop.
Always the way, isn't it? That "just a little bit more" thinking has burned most of us. Locking in profit is a skill in itself, often harder than finding the entry.