Crude Oil Tumbles Several Hundred Ticks In Minutes
- Anthony Speciale
- Aug 30, 2024
- 5 min read
Hey Trader,
The Power of Obedience in Your Trading Journey
In the ever-changing landscape of the markets, it's essential to have a guiding principle. Jeremiah reminds us of a timeless truth:
Just as we follow strategies and rules in trading to achieve success, following God's guidance brings clarity and purpose to our lives.
When we walk in obedience to His word, it lays a solid foundation for everything we do, leading to peace and prosperity in all areas.
Let this verse guide your actions both in and out of the markets!
Be Relentless In Pursuit Of The Will
Which God Has Set Upon Your Heart,
Anthony Speciale
Crude Oil Tumbles Several Hundred Ticks In Minutes
In the world of trading, few things can match the adrenaline rush of a fast-paced market move.
This morning's crude oil session was one such ride, a whirlwind of activity that presented both opportunities and challenges.
As retail traders, it's essential to understand not just the mechanics of the market but also the thought processes that go into making split-second decisions.
Let's dive into today's session, dissect the action, and explore the principles that can help guide your trading decisions.
The Setup: Observing the Market
Today started like any other—no grand plans to trade, just a routine morning of breakfast at the desk and observing the market.
It's crucial to emphasize that being an observer is a core part of trading. Not every day will present opportunities, and sometimes the best trade is the one you don't take.
As I watched the crude oil market, I noticed price action that warranted attention. We saw the market make a low, reject off that low, and then hold a specific area.
The price action pulled back significantly into key levels, including the VWAP (Volume Weighted Average Price) and an emphasized support zone.
This pullback was the first indication that the market might be setting up for a move.
The Move: Recognizing Opportunity in Real-Time
As the market continued to pull back, two small candles on the chart caught my eye—these were the inklings that a larger move might be brewing.
My initial target was 75.50, where resting liquidity had been observed.
However, the market moved so quickly that by the time I had entered the trade, the move was already underway.
In a matter of moments, the market tumbled, and I made the decision to exit the trade almost as quickly as I had entered it.
This wasn't about hesitation but rather about recognizing the speed and efficiency of the move.
With the day before Labor Day weekend and a mid-morning tee time on the horizon, my goal was to capture the profit, exit, and not look back.
The Decision: Balancing Risk and Reward
The market can be unpredictable, and chasing the perfect exit—whether it's the daily high if you're long or the daily low if you're short—can often be a fool's errand.
It's vital to understand that trading isn't about perfection but about making decisions based on the evidence the market provides.
The evidence today came from the price action and the pullback, which aligned with the higher time frame biases and market conditions.
The decision to exit quickly was driven by the need to balance the risk of the position with the reward already realized. In this case, the reward was substantial enough to justify an early exit.
The Lesson: Avoiding the Trap of Greed
Greed is one of the most dangerous emotions in trading.
It's what drives traders to overtrade, to hold onto positions longer than they should, and to take unnecessary risks.
The reality is that successful trading isn't about taking as many trades as possible—it's about being selective, taking only the trades that meet your criteria, and managing them with discipline.
They wait for the market to align with their analysis, and they execute with precision.
Their P&L (Profit and Loss) curves are smooth, not jagged, reflecting a disciplined approach to trading that avoids the emotional roller coaster of chasing every move.
The Approach: Trading Less, Gaining More
As traders, especially as we gain more experience and our accounts grow, the goal should be to trade less, not more.
With larger positions and more capital at stake, it's not necessary to take as many trades to achieve substantial returns.
The focus shifts from quantity to quality, from being a market participant to being a market observer.
This morning, my intention wasn't to trade at all, but rather to watch the market.
It was only when the market met all the criteria of my trade plan that I decided to take action. This is the mindset I advocate for all traders—be an observer first.
Only when the market presents a clear opportunity, backed by your analysis and risk management strategy, should you consider putting on risk.
The Process: Creating Consistency Through Discipline
Consistency in trading comes from doing the same thing over and over again, based on a solid trade plan and risk management strategy.
It's not about reacting to every market move but about following a checklist that you have made your own.
This approach minimizes the emotional impact of trading and increases the likelihood of long-term success.
Test it, refine it, and practice it in a simulated environment if necessary.
But above all, be consistent. Jumping from one strategy to another, or blending different strategies without a clear plan, is a recipe for inconsistency and frustration.
The Conclusion: Trading for Freedom, Not Just Profit
At the end of the day, we trade not just for the financial rewards but for the freedom it affords us.
The ability to create our own schedules, to take time off when we choose, and to be unchained from the traditional ways of earning money.
This freedom is what drives many of us to pursue trading as a career.
Today's trade was a reminder of why I became a trader.
It was about taking advantage of an opportunity when it presented itself, capturing the profit, and then stepping away to enjoy the other aspects of life.
There will always be another trading day, another opportunity—but life outside the markets is just as important.
As you continue on your trading journey, remember to stay disciplined, avoid the traps of greed and FOMO (fear of missing out), and focus on creating consistency through a well-defined trade plan.
The markets will always be there, but your peace of mind and freedom are invaluable.
Stay informed, stay focused and stay disciplined ! ! !
Thank you for reading, and I look forward to seeing you in our next session . . .
God bless, and have a wonderful day!
If you have any questions or need further guidance, please don't hesitate . . . info@specialeanalysis.com May the markets be ever in your favor!
Happy Trading,
Speciale Analysis
About the Author:
Anthony Speciale is a seasoned market analyst with over 13 years of experience trading. Through his platform, Speciale Analysis, he offers in-depth market analysis, interpretation, and expectations designed to help all types of traders, at every skill levels reach their full potential.
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NOTE: Trading involves significant risk, and it's essential to approach it with a well-defined strategy and a disciplined mindset. This blog post is intended for educational purposes and should not be considered financial advice. Always conduct your own research and consult with a professional before making an financial decisions. For further risk related information, please refer to: www.specialeanalysis.com/disclaimer
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