Here is another article which contains many gems of wisdom: http://www.learntotradethemarket.com/forex-currency-trading-blog/why-your-not-making-money-trading
I can particularly relate to this excerpt:
You have a very nice trade that hits your profit target almost exactly, you feel good, the market feels ‘easy’, you start looking for your next trade right away because you’ve got a little more money to “throw around” now. Before you know it, you’ve entered the market on what was not a very good signal and your trade is negative, it continues to go against you turning into a loser. After it’s over, you think to yourself, “That was a stupid trade and I knew it, why did I enter it?”
Indeed I've committed that trading sin before, in fact just last week. The trades I had then were profiting nicely so I made some sub optimal trades with the mentality that "It is ok, my risk is well managed, at most I'll lose that trade but I'll still be in profits overall." Lets just say the outcome wasn't too pretty... :P So yep, it takes a conscious effort not to over trade and take inferior setups, as doing so is natural to our human psychology.
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