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AMby u/almeida_mateo·5dDiscussion

My costly lesson in 'feeling it'

Alright, so I'm relatively new to this forum, but certainly not to the markets. Been around the block a few times, mostly in FX and some crypto, seen my fair share of both the good, the bad, and the downright ugly. Figured my first post should be something useful, or at least cautionary, for anyone else who's been bitten by the 'gut feeling' bug.

My biggest, and most expensive, lesson came during a choppy period for $EURUSD a few years back. The trend was technically still up on the daily, but the intraday charts were a mess. I'd had a couple of decent wins earlier in the week, nothing huge, but enough to make me feel invincible, which is, of course, the precursor to every disaster. I saw a setup, or rather, I felt a setup, that just had to go my way. It was a contrarian move, against the choppy short-term flow but supposedly in line with the bigger picture. Problem was, my entry was sloppy, my stop was a mental one because 'it wouldn't get there', and my sizing was based on that inflated sense of confidence, not on the actual setup's risk. Naturally, it went against me, and I kept moving that mental stop, convinced it would turn around. It never did. Ended up giving back all my weekly gains and then some, purely because I traded my emotion rather than my plan. The market, as it always does, humbled me with a hefty tuition fee.

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