In the last few months, I've been visualizing myself getting into trades i'm not supposed to and that I AUTOMATICALLY without thinking just get out. This week, I fomo'd into a trade and as soon as I entered the trade, I instantly felt my body saying GET OUT, GET OUT, GET OUT.. It felt like minutes and I couldn't think/analyze my situation well-- I ended up going flat and got out of the trade. The trade eventually went on to make money without me but the MOST IMPORTANT thing is that I followed the appropriate decision at THAT SPECIFIC MOMENT in time. Hindsight trading is very dangerous, i could've made money on that trade but it would've either reinforced a bad habit/bad planning and I could get BURNED SEVERELY in the future. It's the 2nd trade below:
What was crazy about this was it felt like minutes went by.. Looking back.. it took me 16secs to finally get out of the trade.
So the problem with this trade is that I had 2 contradicting habits in play. The main problem was that the strategy/plan was flawed. This was a perfectly good squeeze but I missed out on it because I didn't give it enough time to work and I've programmed myself to get out asap if it didn't meet the time criteria per what the plan required (which the time criteria was too low). The trade did not hit the planned stop level of the previous low of the 5min candle but I got scared out because I thought I was fomo'ing when I really didn't. Since I felt like I was fomo'ing, my capital preservation habit kicked in and I got myself out.
Pros: Capital Preservation habit is working..
Cons: Trade plan was flawed and is NOW refined.
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