Let’s recap the leaderboard to start this week.
Mao Long Yang continues to lead the charge, at 520%, providing a target for all those below him. Once again, his sole focus on trading Gold has provided the ability to make some impressive gains from the shiny metal.
Wen Bin Yang made an impressive leap up the leaderboard over the last week, managing to bank his biggest wins on Gold.
Let’s take a look at the chart of Gold over the last week with a 1-hour timeframe.
It would be fair to say that Gold has been a tricky asset to trade, spending most of the sessions range-bound, threatening to break out.
But it wasn’t until the end of the week, when Coronavirus numbers escalated, that traders piled into Gold, pushing it out of the short-term range.
In fact, since the 15th of June (Monday last week), here are a handful of his biggest wins on Gold, plus two currency pairs.
Towards the end of the week, you will notice two excellent wins by going long Gold.
But it was not all plain sailing.
His biggest loss also came through trading Gold, losing $1,839 on the 18th of June.
What is interesting is his ability to bounce back, following his largest losses to date across Gold.
You can see below that six of his biggest losses were on the 15th of June at the start of the week.
And if you scroll back up, you will note his biggest wins followed these losses.
Bouncing back from a series of losses
Bouncing back is one of the hardest challenges all traders face. No one likes losing and even more so when your hard-earned money is on the line.
But the key to all professional traders is their ability to apply their edge in the market and sensibly allocate risk.
As you can see, the size of his trades on gold, have been averaging approximately 0.7 lots, as per the XAUUSDzero trades above, but his largest trade was an outlier in his account.
If we look into the series of trades that lead up to the largest loss, we could suggest he was over-confident.
Wen Bin Yang managed a series of his best trades leading up to the largest loss, so it is possible he was not willing to be ‘proven wrong’ on his losing trade. Instead of cutting the loss when it was small, he rode the loss to his biggest of the month.
These are valuable lessons and given that he bounced back the next day with a series of smaller positions and several excellent wins, we can assume he has ‘steadied the ship’.
It will be another exciting week ahead, especially with Gold and Oil on the cusp of a short-term breakout. Will they break out into new short-term highs?
And what about the US dollar? Will it continue to strengthen, providing opportunities across the Eurodollar and the British pound?
We wish you all the best with your trading and look forward to bringing you more updates across the week, as we head into the final seven days.
Ashley Jessen is the author of CFDs Made Simple and Head of Marketing at ACY Securities. He has been in the financial services industry since the year 2000 and worked for some of the leading companies in the CFD, Forex and Online Trading space.