{"id":21636,"date":"2024-03-07T07:30:10","date_gmt":"2024-03-07T12:30:10","guid":{"rendered":"https:\/\/www.jeffclarktrader.com\/?p=21636"},"modified":"2024-03-07T07:30:10","modified_gmt":"2024-03-07T12:30:10","slug":"know-when-to-fold","status":"publish","type":"post","link":"https:\/\/jeffclarktrader.com\/market-minute\/know-when-to-fold\/","title":{"rendered":"Know When to Fold"},"content":{"rendered":"
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“You’ve got to know when to hold ’em, know when to fold ’em, know when to walk away, know when to run.”<\/p>\n

– Kenny Rogers<\/p>\n<\/blockquote>\n

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.<\/p>\n

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.<\/p>\n

The Oil Example: A Lesson in Humility<\/h2>\n

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.<\/p>\n

While it’s possible that oil prices could drop, allowing those positions to become profitable again, betting on such outcomes is speculative.<\/p>\n

Why Folding Early Matters<\/h2>\n

Accepting a 10% loss rather than risking a 30% loss underscores a vital trading principle: not every loss turns into a gain.<\/p>\n

The courage to fold early, guided by humility and an understanding of market trends, is what differentiates the strategic trader from the gambler.<\/p>\n

It’s a hard-earned lesson in the importance of protecting your capital for opportunities where the odds are more favorable.<\/p>\n

<\/p>\n

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Free Trading Resources<\/strong><\/p>\n

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 \u2013 at zero cost to you. Just click here<\/a> to check it out.<\/p>\n<\/p><\/div>\n<\/div>\n

<\/p>\n

Implementing Strategic Humility<\/h2>\n

This approach requires a disciplined mindset:<\/p>\n

    \n
  • \n

    Adopt Stop-Loss Orders: Use them not as a sign of defeat but as a tool of strategic defense.<\/p>\n<\/li>\n

  • \n

    Assess Risk-Reward Ratios: Always weigh the potential gain against the risk of holding onto a losing position.<\/p>\n<\/li>\n

  • \n

    Embrace Humility: Let go of ego and greed. Recognize that folding can be a powerful move towards achieving your trading goals.<\/p>\n<\/li>\n<\/ul>\n

    Reflecting on our recent advice regarding oil, and the broader strategy of folding at the right time, offers a profound lesson.<\/p>\n

    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.<\/p>\n

    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.<\/p>\n

    Regards,<\/p>\n

    Brad Hoppmann
    Analyst, Market Minute<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"

    Just last week, I advised those holding short positions in oil to consider folding\u2026<\/p>\n","protected":false},"author":55,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"ep_exclude_from_search":false,"service":"","footnotes":""},"categories":[1],"tags":[],"publication":[10],"person":[97],"newsletter-type":[],"ticker":[],"class_list":["post-21636","post","type-post","status-publish","format-standard","hentry","category-market-minute","publication-market-minute","person-brad-hoppmann"],"acf":[],"_links":{"self":[{"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/posts\/21636","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/users\/55"}],"replies":[{"embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/comments?post=21636"}],"version-history":[{"count":0,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/posts\/21636\/revisions"}],"wp:attachment":[{"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/media?parent=21636"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/categories?post=21636"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/tags?post=21636"},{"taxonomy":"publication","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/publication?post=21636"},{"taxonomy":"person","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/person?post=21636"},{"taxonomy":"newsletter-type","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/newsletter-type?post=21636"},{"taxonomy":"ticker","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/ticker?post=21636"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}