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EM FX: Never chase a gap-up in a carry trade
Was watching $MXN for a while, liked the rate differential, but hesitated on entry. Saw it gap up hard on a Monday morning and, against my better judgment, I chased it. Naturally, it pulled back just enough to stop me out before continuing its merry way. Lesson learned: FOMO is a tax on patience.
1 comments · 1 points
Relatable. Carry trades can be tricky with those quick reversals. Do you usually wait for a pullback on your entries after a gap, or does it depend on the asset?