Know When to Fold

Just last week, I advised those holding short positions in oil to consider folding… [Jeff Clark's Market Minute]( Know When to Fold By Brad Hoppmann, analyst, Market Minute "You've got to know when to hold 'em, know when to fold 'em, know when to walk away, know when to run." - Kenny Rogers Just last week, I advised those holding short positions in oil to consider folding if prices climbed above $79 or $80. As oil now hovers above $79, it's a timely reminder of the fine line we walk between strategic foresight and the humility to act on it. Even though I believe oil prices may retract, the essence of strategic trading lies not just in predicting the market but in knowing when to fold. The Oil Example: A Lesson in Humility History shows that only a few positions recover from such downturns once you get to a 10% loss. It's a stark reminder that humility and the willingness to accept a smaller loss is not just prudent, it's essential to long-term success. While it's possible that oil prices could drop, allowing those positions to become profitable again, betting on such outcomes is speculative. Why Folding Early Matters Accepting a 10% loss rather than risking a 30% loss underscores a vital trading principle: not every loss turns into a gain. The courage to fold early, guided by humility and an understanding of market trends, is what differentiates the strategic trader from the gambler. It's a hard-earned lesson in the importance of protecting your capital for opportunities where the odds are more favorable. Free Trading Resources Have you checked out Jeff's free trading resources on his website? It contains a selection of special reports, training videos, and a full trading glossary to help kickstart your trading career – at zero cost to you. Just [click here]( to check it out. Implementing Strategic Humility This approach requires a disciplined mindset: - Adopt Stop-Loss Orders: Use them not as a sign of defeat but as a tool of strategic defense. - Assess Risk-Reward Ratios: Always weigh the potential gain against the risk of holding onto a losing position. - Embrace Humility: Let go of ego and greed. Recognize that folding can be a powerful move towards achieving your trading goals. Reflecting on our recent advice regarding oil, and the broader strategy of folding at the right time, offers a profound lesson. In trading, as in poker, the wisdom to fold is invaluable. It reflects not just an understanding of the market but a deeper appreciation for the virtues of humility and strategic patience. Embracing these principles can guide us through the uncertainties of the market, preserving our capital for the moments when the tide turns in our favor. Regards, Brad Hoppmann Analyst, Market Minute [Jeff Clark's Market Minute]( Jeff Clark Trader 55 NE 5th Avenue, Delray Beach, FL 33483 [www.jeffclarktrader.com]( To ensure our emails continue reaching your inbox, please [add our email address]( to your address book. This editorial email containing advertisements was sent to {EMAIL} because you subscribed to this service. To stop receiving these emails, click [here](. Jeff Clark Trader welcomes your feedback and questions. But please note: The law prohibits us from giving personalized advice. To contact Customer Service, call toll free Domestic/International: 1-800-752-0820, Mon–Fri, 9am–7pm ET, or email us [here](mailto:contactus@jeffclarktrader.com). © 2024 Omnia Research, LLC. All rights reserved. Any reproduction, copying, or redistribution of our content, in whole or in part, is prohibited without written permission from Omnia Research, LLC. [Privacy Policy]( | [Terms of Use](