Hey Trader,
Finding True Confidence In Your Trading Journey
I hope this email finds you well and in good spirits.
Today, I wanted to share a verse that I find incredibly inspiring, especially in the world of trading where confidence and humility play such crucial roles.
"But, ‘Let the one who boasts boast in the Lord.’ For it is not the one who commends himself who is approved, but the one whom the Lord commends." - 2 Corinthians 10:17-18
As retail traders, we often seek validation through our successes, constantly measuring our worth by our wins and losses. This verse reminds us that true approval and commendation come not from our own boasts or achievements but from the Lord.
In trading, as in life, it's essential to remain humble and grounded. Recognizing that our skills and opportunities are gifts can help us maintain perspective and gratitude, even on the toughest trading days. Trusting in a higher power can provide a sense of peace and confidence that transcends market volatility.
Remember, it's not about how much we can praise ourselves for our successes, but about finding our worth in the Lord's commendation. Let this verse inspire you to approach each trading day with humility and trust, knowing that your true value lies beyond the charts and numbers. Wishing you successful and insightful trading ahead!
Be Relentless In Pursuit Of The Will
Which God Has Set Upon Your Heart,
Anthony Speciale
Shorting An IntraDay Head-and-Shoulders Pattern
Anthony here from Speciale Analysis, welcoming you to another deep dive into the world of my own personal day trading.
I hope you're all having a fantastic day. Today, I want to walk you through my thought process, market approach, and the insights that shape my trading decisions.
We’ll focus on my recent experience with crude oil trading, especially in the context of the slower summer trading period between Memorial Day and Labor Day.
Understanding Summertime Trading
Summertime trading often poses unique challenges. The period between Memorial Day and Labor Day is typically characterized by reduced market activity.
This doesn't mean opportunities disappear; they just become less frequent and might not always align perfectly with every trading strategy.
The key is to adapt and recognize these patterns, which is exactly what I did today.
Crude Oil Analysis: A Case Study
Let’s break down my crude oil trade today. It was another exaggerated day in the market, taking considerable time for the setups to align. Here’s how I navigated it:
Big Picture View
Starting with the 4-hour chart, I noticed crude oil was testing significant resistance levels, both yesterday and today.
The crucial question was whether we would break through these levels to retest previous highs or face resistance and start falling back.
This area formed a head and shoulders pattern—a classic topping pattern indicating potential reversal.
Identifying the Head and Shoulders Pattern
In this pattern:
The head formed around 0850.
The left shoulder at 0755.
The right shoulder at 0940.
I watched for a break of the neckline, which is a critical indicator of a potential downtrend.
Once the neckline broke, I anticipated a move towards the VWAP (Volume Weighted Average Price) and further towards 78.40, adjusting my target based on emerging liquidity data.
Executing the Trade
Here’s the step-by-step execution of my trade:
Entry Point: I entered short at 78.75 during the retest of the neckline.
Initial Target: Set at 78.58, with the next target at 78.35.
Adjusting Targets: I observed liquidity at 78.37 and adjusted my final target to 78.40, hitting the close position button as we approached it to lock in profits.
By 11:00 AM, I had achieved my targets and decided to call it a day, embodying the principle of taking quick, aggressive profits and knowing when to step back.
Psychological Aspects of Trading
An essential aspect of successful trading is understanding the psychological challenges involved. It’s often not the analytical side that trips traders up but the emotional and psychological aspects. Here’s my take on this:
Discipline and Patience: The highest performing traders often exhibit high levels of discipline and patience. These traits are crucial, especially during slower periods.
Consistent Trade Plans: Having a clear, defined trade plan and sticking to it is vital. If your plan is solid, but you still face issues, it might be the emotional execution that needs work.
Providing Value to Traders: Speciale Analysis Experience
My goal is to share my thought process and help you learn from it.
Whether or not my trades fit your criteria, understanding the rationale behind them can offer valuable insights.
Remember, each trader’s plan and risk tolerance are different, and it’s essential to tailor strategies to fit your individual needs.
Trading during the summer can be challenging but still offers opportunities if approached with the right mindset and strategy.
I hope this breakdown of my crude oil trade provides valuable insights into my trading process. If you found this helpful, feel free to reach out with any questions or join me live in the market. My contact information is below.
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.
Analysis, Interpretation & Expectations
Day, Swing & Position Trade Analysis
Daily LIVE Market & Orderflow Analysis
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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