Instrument: XAUUSD
Trade Type: Long
Timeframe; 4HR
Entry Price: 2,947.044
Stop Loss (SL): 2,937.148
Take Profit (TP): N/A
Risk-Reward Ratio: N/A
Outcome: Unprofitable
Entry/Analysis:
On February 20, 2025, I identified a potential long position in XAU/USD (Gold) at a key support level, which had previously acted as resistance before a breakout. This setup was reinforced by recent bullish momentum in gold prices and news suggesting that an impending audit of gold reserves could weaken the U.S. dollar, potentially driving gold prices higher. Anticipating that the support level would hold, I entered the trade prior to the release of the U.S. jobless claims data, expecting the existing market sentiment to continue.
Exit/Outcome:
Contrary to my expectations, the U.S. Department of Labor reported an increase in initial jobless claims to 219,000 for the week ending February 15, 2025, up from the previous week's revised level of 213,000. This unexpected rise in unemployment claims led to a shift in market sentiment, causing gold prices to break below the identified support level. Consequently, my stop loss was triggered shortly after entry, resulting in a loss on the trade.
Psychology:
Reflecting on this experience, I recognize that impatience and deviation from my initial trading plan were key factors in the unfavorable outcome. Despite planning to wait for the jobless claims data before entering a trade, I allowed overconfidence and external work pressures to influence my decision to enter prematurely. Additionally, I overlooked the lack of a significant pullback, which would have provided a more favorable risk-reward setup. To address these issues, I will implement the following strategies:
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Adherence to Trading Plans: Commit to executing trades strictly in line with pre-established plans, ensuring that all predefined criteria are met before entry.
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Patience and Discipline: Cultivate patience by setting clear rules for trade entry, including waiting for critical economic data releases and appropriate market conditions.
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Mindfulness of External Influences: Acknowledge and mitigate the impact of external pressures, such as work-related stress, by scheduling dedicated trading times free from distractions.
By integrating these practices, I aim to enhance my decision-making process, reduce impulsive trading actions, and improve overall trading performance.
Trade Score:
Execution: 1/3
Psychology: 1/3
Overall Trade: 2/6
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