Finger Freeze

Finger Freeze
Photo by engin akyurt / Unsplash

So here is how I see it, you go to the effort of backtesting a system, working out an entry and exit strategy, fine tune your stop loss levels and are ready to go.

You watch the markets, the news, the stars and numerology until you find the exact point you want to enter the trade, you decide you are going short on the Sterling at 1.7595 and then I'll sit back and watch the money tree grow.

Price moves to 1.7592, you have the trigger finger ready, just waiting for that 1.7595 level to be hit, you've turned your chair to face north 'cause that is supposed to be good feng shui, you've got your lucky undies on and you haven't washed your trigger finger for a week to make sure you don't destroy the good luck from your last weeks winning trade .... price get's to 1.7594, so close, come on just one more pip and we are on our way to riches ... 1.7592 ... bugger ... 1.7593 ... come on baby ... 1.7592 ... 1.7594 ... 1.7593 .... 1.7591 ... 1.7589 .. crap! ... and it goes on ... before you know it ... the Sterling has plunged on European opening to 1.7522 and you're lucky undies are now on your head all over 1 damn pip.

If this sounds familiar, then join the club, we have plenty of spots open, I like to call this scenario finger freeze ... when you just can't hit the trigger despite 90% of your criteria being met.

That 1 pip has cost you 50 pips and the cost of a new vase that you just broke out of frustration.

Losing can be frustrating, but missing a winning trade by one pip when you were right there can drive the most sane person up the wall.

Is that one pip really that important?, if one pips can send your account over the edge then you shouldn't be trading in the first place.

Finger freeze can hit you at any time, either on entry or exit, in fact calling it finger freeze could be a little understating it, as it is more than just the finger that suffers from temporary paralysis, the brain, the eyes ... everything glazes over.

Finger freeze can be attributed to one thing ... fear, trade scared and you are asking for a butt whipping, to trade effectively, you need to be decisive, brave yet responsible.

I am usually one of these three at one time or another, but rarely all three at the same time. Until that happens, finger freeze is bound to strike again!