I lost everything...

Summary

In this video, a trader shares their experience of losing £17,000 (5% of total equity) over the course of a week due to a series of losing trades. Despite the loss, the trader emphasizes the importance of risk management, revealing that each trade never exceeded 1% of their total equity. They discuss the role of market data, such as inflation fears and political influences (specifically Donald Trump), on gold prices. Through technical analysis, the trader outlines strategies for managing risks and making informed decisions in volatile markets, ultimately aiming to educate others on responsible trading practices.

Takeaways

• 😀 Losses are an inconvenient topic for many traders, but discussing them openly is important for learning and growth in the trading community.
• 😀 The total loss for the week was £17,000, approximately 5% of the trader's total equity, which aligns with their risk management strategy.
• 😀 On January 6th, the trader had a profitable start to the year, earning £4,300 from a successful trade with gold.
• 😀 The trader faced multiple stop losses on subsequent trades due to market pullbacks, but remained calm and saw this as an opportunity to learn and adjust strategy.
• 😀 Despite having 36 losing trades, the trader's risk management system ensured they didn't blow their account, as no single trade risk exceeded 1%.
• 😀 Risk management is crucial to long-term success in trading, and even a significant loss like £17,000 doesn't cause catastrophic damage if managed properly.
• 😀 Mental health and the well-being of one's family should be prioritized when trading, as losing large amounts of money can have far-reaching negative consequences.
• 😀 On Friday, despite a profitable NFP trade, the trader's stop losses were hit, minimizing profits and highlighting the unpredictable nature of the market.
• 😀 The market's reaction to news, especially with factors like inflation and fiscal policies, can significantly impact asset prices, including gold.
• 😀 The trader is closely watching economic indicators such as PPI and CPI for potential impacts on gold prices, noting that market fear of inflation can drive safe haven demand.
• 😀 The trader uses technical analysis tools like Fibonacci retracement levels to guide their trading decisions, paying attention to key resistance and support levels in gold.

Q & A

What was the total loss for the trader in the week, and how does it compare to their equity?

The trader lost £17,000 during the week, which equals approximately 5% of their total equity.

What trading strategy did the trader use to manage risk during the week?

The trader used strict risk management by ensuring that no single trade risk exceeded 1% of their total equity, with most trades risking far less (around 0.1% to 0.6%).

What led to the trader’s significant losses during the week?

The trader faced multiple stop-loss hits due to poor market conditions, pullbacks, and unexpected movements. Despite their initial success, the market reversed several times, leading to significant losses.

What lesson does the trader want to convey about risk management?

The key message is that risk management is critical; even with significant losses, as long as the risk per trade is controlled, an account can remain viable even after many losing trades.

How did the trader handle their mental state after several consecutive losses?

After several losses, the trader took a day off to clear their mind, spending time with family and focusing on mental health before analyzing the market again.

How did the NFP (Non-Farm Payroll) data influence the market during the week?

The NFP data exceeded expectations, contributing to a market movement that the trader anticipated, leading to a temporary profit despite the earlier losses.

What role did Donald Trump’s policies play in the market movements according to the trader?

The trader suggests that fears of inflation driven by Donald Trump's fiscal policies are influencing the market, especially impacting gold prices as investors seek safe-haven assets.

What technical analysis tool did the trader use to assess gold's price movement?

The trader used Fibonacci retracement levels and identified a strong resistance level at the 78.6% Fibonacci retracement, as well as the psychological barrier of the 2700 price level, to predict potential market movements.

What is the trader’s outlook for gold prices in the upcoming week?

The trader expects gold prices to either break to the upside or downside depending on upcoming data, particularly CPI and PPI. They remain cautiously bearish, watching for any breakout above 2700 to shift their strategy.

What upcoming events are expected to influence market movements, according to the trader?

The trader mentions important economic data releases, such as CPI and PPI, and earnings reports from major companies like TSM and JP Morgan, all of which could influence the market and gold prices.