Trading is a game of probabilities, and sometimes even the best laid plans can go awry. Today, I missed a textbook setup on USD/JPY and it was a valuable lesson in reminding myself to always trade what I see, not what I think.
In hindsight, the weakness in DXY should have been a signal to only scalp short positions on the indices, but I got caught up in my own analysis and failed to pay attention to the unfoldment of current price action.
It's important to remember that if a setup is violated, it's time to look for something else or leave the market altogether. Decreasing position size when necessary is also key to managing risk.
Another important aspect of successful trading is detaching the results of individual trades from emotions. Don't get too high on your wins or too low on your losses. Stay objective and focus on the bigger picture.
Knowing when to walk away and observe the signals is also critical. If you're approaching personal or prop firm limits, it's time to park the account and reassess. Paying attention to account usage and being mindful of your limitations is key to long-term success.
In summary, stay disciplined and trade what you see, not what you think. Don't let emotions get in the way of sound decision making, and always be mindful of your account usage and limitations.
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