GBPCAD Long - Friday 06th September 2024

Published on 6 September 2024 at 17:02

Instrument: GBPCAD
Trade Type: Long
Timeframe: [4HR]
Entry Price: [1.77868]
Stop Loss (SL): [1.77768]
Take Profit (TP): [1.78368]
Risk-Reward Ratio: 1:5
Outcome: Stopped out

Entry/Analysis:

I entered a long trade on GBPCAD after spotting strong support rejections and alignment with the 0.5 Fibonacci retracement level. This confluence, combined with retail sentiment heavily favoring shorts, signaled a solid long opportunity against the crowd. A small pullback to the support zone provided an ideal entry, and I placed my stop loss just below the previous wick for controlled risk management. The setup aligned perfectly with my strategy, offering a favorable risk-reward ratio.

Exit/Outcome:

The trade initially moved in my favor, but just before the release of the volatile US Non-Farm Payroll data, price reversed and hit my stop loss. Shortly after being stopped out, the price reversed again, moving up toward the original target. Despite being stopped out, the direction was correct, but I didn’t account for the pre-news volatility, which ultimately influenced the trade’s outcome.

Psychology:

Despite the frustrating outcome, I maintained my composure and accepted the result. I had fully prepared myself for the possibility of a stop-out, which kept my emotions in check. The main lesson here is to be more mindful of news events and adjust execution, such as placing pre-orders or wider stops. My confidence in the overall strategy remains intact, knowing that losses like this are part of the process.

Rating:
Execution: 3/3
Psychology: 3/3
Overall Trade: 6/6

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