October began with the opening of Asian markets, marking a historic negative close for most stock indices. Stocks posted a mixed performance, while oil prices experienced a decline. Numerous companies reached new annual lows, even though the S&P 500 index continues to set historic highs.

This apparent contradiction, where the overall index rises while most of its components fall, could indicate a possible false breakout. Despite reassuring statements from the Federal Reserve, uncertainty persists in the markets.

It is crucial to keep stop loss (SL) orders tight and be prepared for significant volatility. Every move in your investment portfolio is important, so it is essential to learn from the markets and make informed decisions to protect your capital.