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The FX Bootcamp Guide to Strategic and Tactical Forex Trading by Wayne McDonell

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DO YOU HAVE THE GUTS?

Look into the mirror and ask yourself, “Do I have the guts not to trade?” Having control over your emotions and the discipline to not chase price is the real-world test of your long-term potential.
Remember, the number one goal of a conservative trader is to preserve capital and to not put yourself into situations where you may lose. Reacting to the market clearly puts you into a position that you are not in control of. Why did you not anticipate this move in advance? Because you did not anticipate the move, trading it is risky because you simply do not have a clear understanding of why it’s moving. It could change direction any second. Step aside.
In such a situation, if you end up making a winning trade, you do not deserve the pips. You got lucky and eventually your luck will run out.
You earn your pips in your planning. If your planning didn’t foresee this move, then create a new plan. Don’t trade without preplanning, because you clearly missed something in your analysis and you will have no control over your destiny. Avoid the temptation of short-term gains and focus on developing long-term trading skills with patience and discipline to plan.
Unanticipated moves can happen a lot, as you can’t know everything—and everything matters in forex. It’s an efficient market, which means all known information is priced in immediately. News, data, weather, politics, terrorism, commodities, equities, bonds—everything matters. You can’t know everything.

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