Losses Will Happen Within Every Edge (aka: Trade Plan)
- Anthony Speciale
- Jun 7, 2024
- 4 min read
Hey Trader,
Find Joy and Clarity in Your Trading Journey
I hope this message finds you well and inspired. In the often tumultuous world of trading, finding moments of clarity and joy can be challenging.
Today, I want to share a piece of wisdom that has personally helped me navigate both the highs and lows of the market.
"The precepts of the Lord are right, giving joy to the heart. The commands of the Lord are radiant, giving light to the eyes." - Psalm 19:8
This beautiful verse reminds us that true guidance and wisdom come from the Lord's precepts. Just as His commands bring joy to the heart and light to the eyes, we can find similar clarity and happiness by aligning our trading practices with sound principles and disciplined strategies.
When we base our decisions on solid analysis and a clear understanding of the market, we can approach each trade with confidence and peace of mind. Much like the radiant commands of the Lord, let your trading strategy illuminate your path and guide you through the uncertainties.
Successful trading isn't just about profit; it's about maintaining a joyful and clear perspective, even when the market tests your resolve. Let this verse inspire you to seek wisdom and find joy in your journey. Wishing you clarity, joy, and prosperous trading!
Be Relentless In Pursuit Of The Will
Which God Has Set Upon Your Heart,
Anthony Speciale
Losses Will Happen Within Every Edge (aka: Trade Plan)
Anthony here from Speciale Analysis. Today, I want to share a personal experience that highlights some key lessons in trading, particularly in the energy markets.
This morning, I experienced a loss on my first trade, but I recovered and ended the day profitably on my second trade.
This is a crucial aspect of trading that every trader must understand: losses are inevitable, and how you manage them defines your success.
Trading is not about winning all the time; it's about knowing how to manage your losses and letting your winners run.
The best traders in the world understand that they will encounter losses day to day, week to week, month to month, and so on.
The key is to recognize when you're wrong, accept it, and move on without letting it affect your psychological or emotional state.
This morning, I took a loss on my first trade on WTI Light Sweet Crude Oil.
Here's a breakdown of how I handled it and turned the day around.
Analyzing the Market
I start my day by analyzing the market using multiple charts.
The primary chart I use is a five-minute chart of light sweet crude oil, complemented by a five-minute chart of the US dollar and a four-hour chart for a broader perspective.
We had been recovering into some overhead resistance, and I noticed some buying absorption around 7:20 a.m. Eastern Standard Time.
Absorption, for those unfamiliar, is when there is significant buying or selling interest that prevents the price from moving in the direction of the initial momentum.
This led me to believe there could be a fall from the current levels.
The First Trade: Losses Happen
At 7:25 a.m., I decided to go short at $76.01 with a stop at $76.05, risking four ticks.
Unfortunately, the market moved against me, and I got stopped out.
I accepted the loss calmly and moved on. It's crucial not to let a loss disrupt your mood or trading strategy for the day.
The Second Trade: Turning the Day Around
Noticing continued absorption, I waited for another opportunity that met my edge.
At 8:05 a.m., the market retested the area of absorption with increased buying on a wide bar candle. This was a clear signal for me to get short again.
I entered at $76.09 with a stop at $76.14, this time risking five ticks.
This time, the trade worked out as planned. The market failed to push higher and started to roll over.
Taking profits at various levels: $75.90, $75.80, $75.70, $75.60, eventually reaching $75.45.
This method of gradually taking profits and adjusting my stop to break even ensured that I protected my gains.
Accept Losses: Understand that losses are part of trading. The best traders know how to manage them without letting them affect their psychological state.
Analyze and Adapt: Use multiple charts and timeframes to get a comprehensive view of the market. Look for signals like absorption to guide your trades.
Risk Management: Always risk a small amount relative to potential gains. This ensures that even if you're wrong, the loss is manageable.
Take Profits Gradually: Don’t be greedy. Take profits at various levels to ensure you lock in gains while the market moves in your favor.
Ready to Take Your Trading to the Next Level?
If you're serious about trading and ready to embrace the challenges, I invite you to learn more about the Speciale Analysis Experience.
This program is designed specifically for retail traders looking to enhance their career.
Through provided market analysis, interpretation and expectations - you’ll learn how to interpret signals, manage risks effectively, and capitalize on market opportunities.
Take the first step towards mastering the art of trading. Equip yourself with the knowledge and tools to navigate the complexities of the market confidently.
Trading is not easy, and it requires dedication, discipline, and a willingness to learn.
If you're ready to put in the effort and focus on what truly matters, the Speciale Analysis Experience could be exactily what you've been looking for.
Click the link below, consume the content, and feel free to reach out with any questions. I'm here to provide honest answers and guide you on your trading journey.
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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