DislikedA rational motivation to trade Forex markets could be money, but are we rational? Dan Ariely and many behavioral economists told us a different rationale.
When we look at history of mankind for the last 3000 years or more, it makes more sense that, it is irrationality that would prevail and dominate human mind.Ignored
Let me give a relevant example. It took me several months to overcome this relevance issue.
I enter a position let's say for a 100 pip profit, with stoploss of 80 pips. The trade goes against me. It goes against me by 70 or 75 pips almost touching my stoploss. Then situation changes, PA starts coming back and gets back to the point where I originally entered. From break-even it goes further up and I am now 10 or 20 pip positive. I used to close my position for those 10 or 20 pips rather than wating for it to hit my TP of 100 pips. Fearing that it could again go back to my stoploss.
Same used to be true for PA first moving in my desired direction, then coming back and showing me a loss of 10 or 20 pips.
It took me months not to think in terms of this relevance and stick to the TP and SL as originally set.
The Thief of Wall Street