I’m back! Decided to take a quick trip away and while I was gone it looks like NZD/CAD bulls to push the pair higher, enough to triggered my rolled down stop. Here’s a quick review!
NZD/CAD Hits Rolled Stop!
In my last adjustment near the end of May, I added back a small portion of my original position after a bounce higher to potentially take advantage of the strong downtrend the pair was in from the end of March through April and May. Of course, my stop was rolled down to .9030 as well to limit my max risk, which was actually a locked in profit since the pair had gone my way quite a bit from my original short entry at .9264 back at the beginning of April.
Well, it looks like the trend was finished at the end of May, most likely on a combination of factors including fears of oil supply increasing, global risk-on vibes rising as fears of an Italian government crisis subsided, and the RBNZ explaining that New Zealand can handle higher interest rates.
Whatever the driving factors may be, forex traders pushed NZD/CAD above that short-lived resistance around .8930, eventually hitting my adjusted stop loss at .9030 on May 28th to close out my entire position for still a nice gain on risk.
So, I earned +0.65% total on my original position after the adjustments, but I took a small hit on the smaller position added later to maximize my profit potential of -0.25%, netting me a total gain of +0.40% on an original risk of 0.50%.
Cutting early turned out to be a good move as the pair continues its trek higher, touching as high as .9150 recently, but in hindsight I probably should have closed the trade manually when the swing high around .8930 was broken strongly and with the oil supply news as a catalyst. I had a feeling a run higher was in the cards because of the oil news, but I wanted to stick to the plan and go for the bigger return in case this was short-term noise.
Unfortunately, it wasn’t just noise this time and I’ll have to settle for a smaller return, but that’s okay because I didn’t give more back because of my adjusted and if conditions favor the Loonie over the Kiwi again, it looks like I can get in for a pretty good price and with a little extra margin to put towards the idea.
We’ll see about that, but for now, I’m in watch mode for new trades with a couple in mind, so stay tuned and check back soon. Good luck and good trading!
This content is strictly for informational purposes only and does not constitute as investment advice. Trading any financial market involves risk. Please read our Risk Disclosure to make sure you understand the risks involved.