Thursday, April 12, 2012

12th April 2012 - loss on XAUUSD


This trade went quickly against me. An inside bar formed below resistance, and so I placed a pending short at the IB's low. The short was triggered a few hours ago. Not long after, major economic news came out of the US showing a spike in jobless claims. The market forecasted 355k, but the real figure came out at 380k. This gap is bad news for the US dollar, causing it to weaken.

Emotional analysis

I was really confident about this trade since the IB formed during a retracement to the overall downward trend, the IB was positioned at the extreme end of the previous bar, it was small and provided an attractive R:R (1:1.5 to 1:3) and resistance held. Watching the market swing against me so quickly after my order was triggered was quite infuriating. I was unable to execute my "big news" contingency plan as market movement was frantic and a part of me hoped the market would turn in my favour again.

The best way to react to this loss is to be philosophical and not take it personally. Any news release can just as easily fall in my favour.

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