The Overnight Hold That Went Wrong (Story)

[Fairman]

The Overnight Hold That Went Wrong (Story)

A composite story based on patterns many traders experience. Names are illustrative.

Let's call him Tayo. He'd entered a strong swing trade on GBPUSD on Thursday afternoon, and by Friday evening, it was in profit. His plan said to close before the weekend. But price was near his target, and he felt certain it would continue.

"Just a little more," he told himself. He removed his take profit and went out with friends.

Over the weekend, unexpected political news broke. When the market opened on Sunday evening, GBPUSD gapped hard against his position. His stop, set well below, was executed far from its level because of the gap.

The profit disappeared, and the loss was larger than anything he'd planned for. He stared at the number, replaying every decision.

The trade itself wasn't bad. His plan was clear. The mistake was breaking the plan out of greed.

After that, Tayo added a rule to his checklist: "Friday, one hour before close, review open trades. Close or reduce unless a written reason says otherwise." He also began to use a smaller size for any trade he intended to hold longer.

Weekends carry risk that charts don't show. Ignoring that risk is a choice, even if it doesn't feel like one.

Plans exist for the moments when your emotions try to rewrite them.

Follow the plan you made when you were calm.