Day 526: What not to do…

Profit: -22.77 Total: $727.53

I made a terrible, amateur mistake once again… Before I went to bed, I noticed USD/JPY setting up for a nice break out triangle. This “triangle” shape within price action indicates pressure building up, followed by an explosion in either direction; up or down. The mistake I made during London session was getting into this triangle a bit too early. Usually, the smart thing and safe way to trade a break out is by having pending orders on both above and below the triangle to catch the big movement. I made the mistake on entering my position too premature. Price wasn’t even breaking out, in hindsight, I’m not sure what possessed me to enter so early. I ultimately got a loss on my long USD/JPY trade, AND missed out on the ultimate downward explosive move. I was too excited for the move that I got too impatient…

The green arrow shows where I longed the pair, the red arrow where I should’ve had a pending order to short.

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