Daily Observations: December 19, 2012
- Long EURCHF from 1.2018, Stop at 1.1990, Target 1 at 1.2500, Target 2 at 1.2750
Recently Closed Positions:
- Stopped Short AUDJPY from 88.83 at 88.80 for +3-pips
- Stopped Short EURJPY (1/2) from 111.10 at 111.10 for 0-pips, (1/2) at 111.45 for -35-pips
- Stopped Short USDJPY from 84.15 at 84.35 for -20-pips
Time Frame: 1-day to 1-week
What started off as a promising week - catching the highs in the Yen-crosses only to see them fill their respective gaps (to the pip in some cases) before ripping higher - is now a disappointment. There's a saying my colleague Michael Boutros says around the desk - "no one ever lost money booking profit." This is perhaps the best lesson to end the year with; after sitting up over +60-pips in AUDJPY, +100-pips in EURJPY, and +40-pips in USDJPY, the market started to turn against me on the lower time frames (Hammers/bottoming patterns on 15m, 1H) yet I consciously decided to let my trades play out. Obviously, this was a mistake. Further, adjusting my Stop on the Short EURJPY position was very evidently short-sighted and a result of irrational decision making.
Missed opportunities like this are disappointing, but they aren't wasted if a lesson is learned; accordingly, it's always good to review proper risk management guidelines to avoid these mistakes in the future.
--- Written by Christopher Vecchio, Currency Analyst
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