Trade Recap – XAUUSD Sell @ 3215/3220
SL: 100 pips | TP: 200+ pips
Introduction
Trading isn’t about being right every time — it’s about being consistent, managing risk, and learning from each experience. Today’s gold trade was a great example of that. While the setup aligned with our technical strategy, the market had other plans. This recap breaks down the thinking behind the trade, what we executed well, where we can improve, and what the experience teaches us moving forward.
The Setup
The plan was to sell XAUUSD in the 3215–3220 zone, with a 100 pip stop loss and a target of 200+ pips. Gold had made an aggressive move up into a supply zone, and we observed a period of consolidation that hinted at a potential reversal. This zone had previously acted as resistance, and the assumption was that sellers might step back in as the market approached it again.
Our entry was strategic — we anticipated rejection from that area, with the expectation that price would respect the zone and rotate lower.
What Went Right
- - Risk Management: This was a textbook example of proper risk management. Our stop was placed at a logical level — above structure — and we accepted the outcome when price hit it. No revenge trading, no chasing, just disciplined execution.
- - Reward-to-Risk Ratio: The setup offered a clean 2:1 R:R, which is what we aim for to stay consistently profitable over time. These are the trades that, even with a 50% win rate, can lead to long-term gains.
- - Trade Plan Was Followed: We didn’t force the trade. It was part of a clear plan based on levels and recent price action, which is what matters most over a series of trades.
What Could’ve Been Better
- - Confirmation: While the level was valid, we didn’t get strong bearish confirmation. There was no engulfing candle, no clear failure to break higher — just a slow consolidation, followed by continuation. Waiting for a clearer sign of weakness could’ve kept us out of this one.
- - Trend Awareness: The overall momentum was still bullish, especially on the lower timeframes. The market was printing higher highs and higher lows consistently — a clear signal that buyers were still in control.
- - Timing: In hindsight, it might’ve been better to wait for a break and fail above 3220, which would indicate a potential trap or exhaustion from buyers. Instead, we jumped in a bit early, anticipating a turn before it truly developed.
Conclusion
This wasn’t a “bad trade” — it was simply a trade on the wrong side of momentum. And that’s okay. We respected our rules, we managed our risk, and we walked away with a loss that’s part of the game. These are the types of trades that don’t hurt you — they teach you. The key takeaway here is this: don’t fight the trend without confirmation. Let the market show its hand before taking the contrarian side.
Losses like this are a part of becoming a skilled trader — use them to grow sharper, smarter, and more disciplined. On to the next setup.
