Hello everyone!

Today there are a few currency pairs offering similar set-ups, all valid from a Technical Analysis point of view. Here I elaborate about two trades that, albeit I like them on the chart, I have decided to pass on them. They are longs on CHFJPY and EURCHF. But why oh why? because I am still in the market from yesterday’s long on EURJPY (see a couple of posts below on this journal).

See, I didn’t want to over-expose myself to the markets. Being long already on EURJPY (+75 pips in profit at the time of writing these lines) means that I am already betting on EUR getting stronger and JPY getting weaker, so if I entered again long on either CHFJPY or EURCHF, I would be virtually adding up my exposure to my EUR-strength / JPY-weakness stand. I am a firm believer in diversifying my risk exposure, so until my EURJPY trade is closed out (or stoploss moved to breakeven), I will refrain from entering any trade related to either of those two currencies. The last thing I want to be is being wrong in my market understanding and being stuck in a double position that’s turning belly-up.

Money Management and common sense are crucial when it comes to trading. Limit your exposure, cherry-pick your trades, and life will be much smoother.

Cheers!