Before the London trading session commenced, I initiated a trade on XAUUSD (gold) when it breached below a specified zone. I exercised patience and waited for the price to retest this zone before entering the trade. Upon observing a break below the low of the retesting candle, I entered the market, managing my risk by allocating only 1% of my account to this trade.
As the trade unfolded, I decided to close 70% of my position after the price moved in my favor, yielding a profit of 25 pips. Subsequently, I further reduced my exposure by closing 60% of the remaining trade when the price reached a profit of 60 pips. To safeguard potential gains, I allowed a small portion of the trade to continue running after securing a break-even point.
This approach exemplifies the importance of strategic entry and exit points, as well as prudent risk management practices, in trading. By exercising patience and adhering to predefined risk parameters, I aimed to capitalize on favorable market movements while mitigating potential losses.