ITCHING - I have been absolutely itching to buy some Pounds these past few days and would love to just jump in. The UK currency is super stretched and is at levels I'm not sure it will remain at for any sustainable period of time. This is going to be a pretty trade in the weeks and months ahead and I really don't want to miss out. Now, I could jump in and get involved right now, but the truth is, while I love the idea of the trade, the actual setup I look for just isn't there yet.
LESSON LEARNED - This is extremely frustrating. But a long time ago when I was in my early years of trading, I learned a painful lesson that I do not want to repeat. In my early years, I would see a trade I knew was going to be great and would jump in so as not to miss it, before getting slammed and taking a terrible loss. The key here is that I jumped into these types of trades not because it was the right time but because I didn't want to miss an opportunity. But that's no way to trade and it can get you into a lot of trouble.
BETTER TRADER - So while it's entirely possible I miss out on buying Pounds, either by was of long GBPUSD or short EURGBP, in the long run, this is the type of decision making and discipline required to make it in this tough business. You need to constantly be able to resist the urge to trade just because you don't want to miss an opportunity. At a very minimum, if you employ this type of discipline, it will improve your decision making and make you a more controlled trader. This is a good thing. So, If I do trade one of these markets in the hours ahead, it will be because I believe it's the right time for the trade and not because I don't want to miss an opportunity.