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A friend of mine, well in all actuality,  a friend of a friend of mine, recently got married, had a baby and quickly picked up the habit of going around and continuously professing his unbridled love for his wife. And that is, well, great. Something that all couples dream of…

Except for the fact that he is walking with his eyes closed.

His “lovely bride,” almost from day one, showed a complete lack of interest in him and gave more respect to the garbage man than she gave her doting husband.  She also seemed to be spending A LOT of time with her husband’s cousin…

Well, he is family, right? At least that’s the lame excuse that her husband would tell all his friends or anyone else that brought it up (it was THAT obvious).

Soon the wife and the cousin started going out together, you know, for ‘coffee’ or ‘a chance meeting as I was out running errands,’ … and both of them were coming home later and later… anything for family… right???

After a few months of textbook denial, the husband finally caught them in the act. Literally.

Does this wife jump up and apologize and promise him that she only loves him and that this ‘meaningless’ fling with his cousin is said and done? Nope.  She just packs her bags and leaves, just like that, leaving her soon to be ex-husband and her newborn baby to fend for themselves.

Okay, so it’s just another sordid adultery laden story, one that unfortunately happens quite often in this crazy world we live in, so what?

The ‘what’ here is what our scorn and betrayed protagonist does next…

There he is, crying for this ‘lovely lady,’ hoping that she will return. I mean he even baked her a cake and called her to come over on her birthday, gosh…

And how does this relate to forex you ask? In this industry you need to know how to win… but you also need to know how to lose…

We make a trade, and we go all in… but as we are singing the praises of our near perfect entry, the trade starts to go against us, showing us that it has no respect what-so-ever for our ‘system.’  And just like that; we fail to be objective, and instead we close our eyes and believe that just because we want this trade to win, it will, and we reject all signals of the market that show us just how wrong we truly are.

Then, so to add insult to injury, Kuroda, or May, or Trump (or whoever happens to be the lying and cheating ‘woman’) starts talking, flirting a bit the commodity markets… but it’s no big deal because our trade is the right one.

Here comes phase two, justification; we look for ANY reason to justify the fact that our trade is the right long term choice, but just a ‘tad underwater.’ The next thing we know is we are deep in the red, and… as you guessed it, instead of accepting the loss, most traders double-down, which leads us to phase three…. DENIAL, and it’s the most fatal of the three phases. We refuse to accept the loss; ‘it was a good trade, it IS a good trade,’ and ‘I totally believe that I’m right’…

Try telling that to the market that is wiping out your account, apparently, it doesn’t know…

But ‘she’ will come back, right??? What am I saying, of COARSE ‘she’ will… time to bake that cake.

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