The Power Of Humility ... Proverbs 18:12
- Anthony Speciale
- Oct 22, 2024
- 5 min read
Updated: Oct 26, 2024
Greetings,
The Power Of Humility
Proverbs 18:12 reminds us:
“Before a downfall the heart is haughty, but humility comes before honor.”
In our walk with Christ, humility is a key virtue. When pride takes hold, it often leads to missteps, but a humble heart opens the door to God’s favor and blessing.
True honor comes not from elevating ourselves, but from walking in humility and allowing God to lift us up in His timing.
Let us strive to walk humbly before God, trusting His plan and His timing for our lives.
Be Relentless In Pursuit Of The Will
Which God Has Set Upon Your Heart,
Anthony Speciale
My goal is to motivate, educate, inspire and make a positive impact on your trading. Whether you're brand new to trading, or you've invested years into the craft -
I invite you to experience the Speciale Analysis Family of Traders difference!
Did I Make A Mistake Risking My First Trade's Profits On My Second Trade?!
Welcome to today’s session recap! If you’ve been keeping an eye on the markets, you’ve probably noticed some challenging conditions across the board, from the Nasdaq and S&P to crude oil and gold. This morning, we saw particularly choppy action, with little decisive movement in any direction.
Today, I’ll be walking you through the crude oil trades I took, the market dynamics I observed, and the lessons I learned that can benefit any retail trader, especially when dealing with uncertainty.
Choppy Markets: A Common Hurdle
From the moment the session opened, crude oil was largely stuck in a sideways pattern. As a trader, these kinds of conditions can be frustrating. The market would make a slight push, only to get stuck again. While this isn’t the most desirable scenario, it's one we must often deal with.
In the early part of the session, I took a couple of small trades to capture a few bucks, but the sideways action kept most of the moves contained within a narrow range. I’ll break down those trades below, but the key takeaway here is that sometimes, less is more. When the market is stuck, forcing trades can lead to unnecessary losses.
Crude Oil Trade Breakdown
Crude oil started showing some activity around 71.30–71.25, which was a high-volume node I was watching closely. I took a small short trade as the price dipped, grabbing profits quickly. While the market didn’t make a large move, my short trade provided a modest gain. In choppy conditions, small wins can add up.
I hesitated to take a long position, even though I identified a potential setup. The reason for this was the high volume being traded at those levels. I was cautious about trading into such significant volume, as it can act as resistance and stall upward momentum.
The market's high-volume area was testing prior lows at 71.53, and while there was some liquidity pushing towards $72, I opted to stay on the sidelines for the long trade. It’s important to recognize when your conviction in a setup isn’t strong enough to justify the risk.
The Four-Hour Perspective: What the Charts Told Us
Looking at the higher timeframes, specifically the four-hour chart, crude oil was stuck in a significant range. After a long period of consolidation, we finally saw a push through a critical level, testing a prior low at 71.53. This provided a bit of clarity, but the market was still uncertain about whether it would hold that level or push higher.
The balance of liquidity and high-volume trading around $72 made the market indecisive. We could have seen a breakout above this level, but it would require more volume to push through the congestion.
For the day, I decided to call it quits after my two short trades. While there was potential for more upside, I didn’t feel comfortable enough with the market conditions to take additional trades. As a trader, sometimes knowing when to walk away is just as important as knowing when to enter a trade.
Managing Risk in Choppy Markets
The first trade I took yielded profits, and I risked those profits on the second trade. Even if the second trade hadn’t gone my way, I would’ve been down only a few hundred dollars more than I had initially made. In choppy conditions, it’s crucial to manage risk tightly and avoid letting one bad trade wipe out previous gains.
In this case, the second trade worked out, and I managed to avoid what could have been a drawdown day. If things had gone differently, I might have kicked myself for overtrading, but by adhering to my risk management strategy, I walked away with a win.
Key Insights for Retail Traders
Here are a few takeaways that can benefit you when navigating similar market conditions:
Don’t Force Trades in Choppy Markets: When the market is stuck in a range, avoid overtrading. Small, strategic trades can yield profits, but pushing for big moves in a choppy environment can lead to unnecessary losses.
Recognize High-Volume Areas: Be cautious when trading into areas of high volume. These zones often act as resistance or support, and it’s essential to be aware of the potential roadblocks they present.
Risk Management Is Everything: Stick to your risk management strategy. If you’re wrong, own it and get out of the trade. You can always reenter if the market presents a new opportunity, but don’t let ego or hesitation lead to larger losses.
Be Aware of Broader Market Conditions: Markets hate uncertainty, and with a significant event like the upcoming presidential election, we may see more choppy or indecisive action. Stay informed, but don’t let external factors dictate poor trading decisions.
Final Thoughts
I’m tapped out for the day after two successful short trades in crude oil. The market continues to show some upside potential, but I’ll be sitting out for the rest of the session. Remember, not every day will bring perfect setups, and sometimes, it’s better to preserve capital and wait for better conditions.
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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