Been thinking a lot lately about a period a few years back trading gold. The volatility, the headlines, the perceived safety asset status – it all drew me in. I remember one particular setup, $XAUUSD was consolidating after a good run up, and I was convinced it was ready for another leg higher. My mistake wasn't necessarily the direction, but the sizing.
I got greedy. Instead of sticking to my usual 1-2% risk per trade, I saw a 'sure thing' and went in with something closer to 5%, maybe even more. The initial move was favorable, which only reinforced the bad habit. Then, a surprise piece of news, a hawkish fed comment, something unexpected, and the price reversed sharply. My stop loss, which was already wider than it should have been for that position size, was blown through before I could even blink. The drawdown from that single trade wiped out weeks of grinding profits. It was a harsh reminder that even in commodities, where the swings can be tempting, leverage is a double-edged sword and sticking to your risk management rules is paramount, no matter how confident you feel about a setup.