I have had a good month to date but with hindsight I stuck with a pretty low probability set-up yesterday to clip back a great deal of my month profit.
I entered the EUR/JPY long in the morning Asian session on Tuesday (which is generally slow at best). My entry was a large green engulfing candle on the 4hour time frame from Monday - I waited for a retracement and entered based on 1 hour chart above - green engulfing closing above the 50EMA.
The market then proceeded to go sideways for the next 3 hours. The mistake I made was that my gut feel was to exit the trade with lunch money profit and wait until the Europe/London sessions opened for possible re-entry, however I held on and the market tanked to take out my hard stop in the afternoon (-$700).
My dilema was going with my gut instinct versus sticking with the trade - this is why trading cannot be fully mechanical. The feel of the market wasn't right - I should have took the salad sandwich profit and waited on the sidelines until some liquidity presented itself.
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