Monday, February 9, 2009

EUR/USD loss

Been awhile since I've taken a loss in the futures. Took a setup with a strong larger timeframe resistance but the intraday was weak. The intraday chart shows three different scenarios in yellow: 1) The type I usually pass on-The weakest of the three. 2) The most common and 3) The strongest. This was a classic case of outcome bias along with plain impatience. I need to keep in mind that weak setups are not validated by a positive outcome. Even weak setups will work sometimes but that doesn't mean you should trade them (unless you're not interested in high probability trading) Likewise, taking a losing streak whilst trading strong setups should not deter you from continuing to take them. Patiently wait for the same strength of setup!

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