Trade Closed: 2009-02-24 11:11
Total: -250 pips/ -1.00% loss
In retrospect, I think my mistake on this trade was under estimating the sentiment on the Japanese Yen and how it was losing value as a save haven currency. My focus was on the issues with Eurozone banks and the potential damage they would do to the euro. It was a good technical trade with high probability, but this was an example of why we need risk management plans for those times when we’re proven wrong. I took a small hit to my account and so I live to trade another day…and that’s what counts.
Thanks for checking out my blog and stay tuned for new ideas!
Trade Update: 2009-02-23 14:21
I am still short bias on the Euro. Eurozone bank stability is still in question, and until we see a change in that situation, the Euro maybe prone to more selling on the rallies. There’s a bit of economic data this week, most notably the German Ifo Business Climate release. Further weakness may steer the Euro down lower.
I will continue to hold my position for now, but stay tuned for adjustments. Thanks!
Trade Idea: 2009-02-19 10:16
I have the EUR/JPY on the four hour chart, and it looks like today’s price action has brought the pair back up to the 120.00 area. The pair has recently met significant resistance and reverse, so the question is, “will resistance hold again?” Stochastics are indicating the pair is overbought in the short term and I like the probability of another reversal at these levels. Here’s what I’m going to do: