Stopped Out At Entry, A Blessing In Disguise
- Anthony Speciale
- Sep 26, 2024
- 5 min read
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Hey Trader,
Gratitude for Your Growing Faith
In the fast-paced world of trading, it’s easy to focus on numbers and charts, but let’s not forget the importance of faith and community.
The growth of your faith and love for others is something to be deeply thankful for.
As you pursue your trading goals, remember that your faith and love are equally valuable and will carry you through any challenge.
Be Relentless In Pursuit Of The Will Which God Has Set Upon Your Heart,
Anthony Speciale
Stopped Out At Entry, A Blessing In Disguise
This morning’s session brought with it a classic example of how volatile markets can sometimes move against even the best-laid trade plans.
As retail traders, we’ve all been there.
You spot a promising setup, execute the trade, and just as things start to go your way, the market reverses direction or volatility knocks you out.
In today’s recap, I’ll walk you through my morning trade, how I managed the position, and most importantly, how I maintained discipline when the market didn’t play out as expected.
The Setup: A Retest of Resistance
The day began with a clear opportunity for a short position.
I noticed a retest of a higher-timeframe resistance level around 8:45 AM.
This was a prime spot to enter a short trade, as the market began to show signs of a sell-off after testing that key resistance.
From a technical standpoint, this was a solid setup.
The resistance level held, indicating a potential reversal.
Everything was lining up for the market to move in my favor.
Entry and Initial Move
I entered my short position right at this resistance point, around 8:45 AM. As expected, the market initially moved in my favor.
Price began to dip, which was encouraging, and I took the opportunity to advance my stop.
The goal here was to protect any profit while giving the market some room to breathe.
I always advise moving stops when a trade is in profit, especially when trading volatile markets.
It’s a way to lock in gains without completely limiting the potential for the trade to play out.
In this case, I placed my stop at my entry point, ensuring that if the market reversed, I wouldn’t lose money on the trade.
The Role of Volatility: Getting Stopped Out
However, as many of us know, volatility is a constant companion in trading.
At around 9:00 AM, a spike in volatility hit the market.
Unfortunately, this surge was enough to trigger my stop, taking me out of the trade at break-even.
In hindsight, it’s easy to say that if my stop had been a bit looser, I might have stayed in the trade and seen it play out.
But the reality is, I had set a tight stop for a reason.
Given the market conditions and the risk involved, I was comfortable with the stop placement.
This is a crucial part of trading discipline—understanding that not every trade will work out and that protecting your capital is always a priority.
What Happened Next: The Market Plummets
After I was stopped out, the market took a sharp dive, exactly as I had anticipated.
If I had still been in the trade, it would have been a highly profitable move.
The price plummeted far beyond my entry point, and it was a classic case of “what could have been.”
But here’s the lesson: Just because the market eventually moved in the direction I predicted, doesn’t mean I made a mistake by getting stopped out.
My stop was in place for a reason, and I honored that. In trading, it’s not just about making money on every trade—it’s about sticking to your plan and managing risk.
Staying Disciplined: Accepting the Outcome
After being stopped out, I had two choices: Jump back into the market or step back and reassess. I chose the latter.
The key takeaway from today’s session wasn’t about missing out on profits—it was about maintaining the discipline to let the market unfold.
I could have easily re-entered the market out of frustration or fear of missing out (FOMO), but that often leads to poor decision-making and bigger losses.
Instead, I stepped back and let the market do its thing. If another solid setup appeared, I would be ready to act.
If not, I was prepared to sit on the sidelines for the rest of the day.
This mindset is crucial for retail traders, especially those who are newer to the game.
Trading isn’t just about chasing every opportunity; it’s about being patient and waiting for the right setups that align with your strategy.
Some days, the market will give you plenty of chances, and other days, it won’t.
But forcing trades rarely ends well.
Final Thoughts: Learning from Volatile Days
Today’s trade is a perfect example of how the market can be unpredictable, and how volatility can take even the most well-planned trades off course.
But it’s also a reminder of the importance of discipline, risk management, and accepting that not every trade will be a winner.
For retail traders, the takeaway is this: Stick to your plan, protect your capital, and don’t let missed opportunities or market volatility shake your confidence.
There will always be more trades, and sometimes the best move is simply stepping back and waiting for the next opportunity.
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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