Fighting the trend? Here's the cost
You keep selling a market that keeps going up. Every short looks right. Then it isn't.
- Real gold 4-hour chart, Aug 3–22: three shorts on big red candles, three stops.
- −$50, −$70, −$75 = −$195 of price. At 0.1 lots, −$1,950.
- Meanwhile gold climbed from about 4020 to over 4600: higher highs, higher lows.
- Check the trend first. Against it, you need a much better reason. In doubt, go with it or wait.
The real chart used in this lesson
Real XAUUSD 4-hour chart · Aug 3 – Aug 22
Quiz at the end: Ever fought a strong trend: never, once, or all the time?
Full transcript
You keep selling a market that keeps going up.
Every short looks right. Then it isn't.
Real gold chart, 4-hour candles, from August 3 to August 22.
Short one: a big red candle on August 6. Sell at 4260, stop above the high at 4310.
It dropped to 4223. Looked right. Then it ran to 4371. Stopped out.
Short two, August 11. Another big red candle. Sell 4370, stop 4440. Stopped again.
Short three, August 18. Sell 4365. It fell to 4324, then hit 4440.
Three shorts, three stops. 195 dollars of price against you.
Gold, 1 standard lot: price moves 1 dollar, that's 100 dollars. At 0.1 lots, 1,950 dollars lost.
Meanwhile, gold climbed from about 4020 to over 4600.
Rule one: check the trend before every trade. Higher highs and higher lows means up.
Rule two: a trade against the trend needs a much better reason than one red candle.
Rule three: when in doubt, trade with the trend, or wait.
Save this. Check the trend first. Against it? Need a strong reason. In doubt? Go with it, or wait.
Your turn. Ever fought a strong trend? Never, once, or all the time? Comment below.
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AI-voiced; written and reviewed by the Borearis Research Team. For education only, not investment advice. Trading involves risk.