This is a story from my personal experience. It was some time last summer. At the time it seemed like something small, but lately I’ve realized that what had happened was actually a very valuable life lesson. I’ve experienced it before, but not as vividly as this time. It was when I found out what determines whether or not you click that call or put button and start your trade.
I even remember what I was trading: EUR/GBP, one of my favorite currency pairs. This was in the summer, so the Brexit was on everybody’s mind. Great Britain had just left the European Union and markets were plummeting. Stocks were going down, the British Pound was losing value, and the outcome was grim. No wonder software such as Brexit Hack was being used like crazy.
Everything Was Right
I was sitting behind my computer analyzing the EUR/GBP rate on different charts, and everything looked like the pound was still on the decline. Different news sources published articles that confirmed my predictions. Some sources showed news about the euro getting stronger, while other sources said the pound was getting weaker. Sure shot, you would think.
Just to be 100 percent sure, I’ve also looked at some reports from analysts. All were saying the same thing: the pound is going down. No exceptions.
But I couldn’t
Back at my trading dashboard, I set all the parameters. This was going to be a 10-minute trade, GBP going down. Everything was set. I just had to click the put button at exactly the right time. My cursor was on the put button, my finger hovering the left mouse button, and then the clock struck the right time (can’t remember what it was, somewhere in the afternoon). That’s when I didn’t click. I just couldn’t. Something stopped me. Then I realized it was my gut feeling. Everything looked perfectly right, every news source confirmed what I thought, but I just couldn’t. My gut feeling was off. That day I learned that you should always go with your gut feeling. Because exactly 10 minutes after when I should have clicked the button… Well, you’ve guessed it. It would have cost me 100 dollars.