Thanks to the broad risk aversion spike on Greece’s weekend developments, the Japanese yen is seeing broad strength. This closed out my CAD/JPY short at the trailed stop. Here’s a quick forex review.
Original Trade Idea: Rising Triangle Break on CAD/JPY
Not much to say on this one other than, “thanks Greece!” With the likelihood of a Greek default on its debt increasing this weekend, the markets went into broad risk aversion mode right from the week open. My trailed stop to 99.20 (ahead of last week’s BOJ statement) was triggered on Monday, taking me out of the position for a very small loss.
Total: -80 pips/ -0.40% loss
Overall, not sad about getting out because Greece is likely to put broad risk aversion on the markets in the short-term, and the Japanese yen should benefit from the that. It was the right thing to do to get out, but I definitely could have closed ahead of last weekend knowing that we were getting really close to Greece’s debt payments deadline. A small gain is better than a small loss right?
But in the grand scheme of things, I’m glad I’m holding onto these trend trades because that’s the right thing to do as a trend trader. It can go either way, but if it goes your way, you can get big wins while limiting the losses to very small. I know my win percentage will suffer with this practice, but I’ll hopefully catch those very big trades that puts me positive for the year.