"A single sentence scarier than a demon" (market proverb)

Earlier, I placed a stop-loss at the recent low for a LONG entry, but

the stop-loss was only nudged down by 0.2 pips, and the loss was confirmed. Soon after, it flipped and rose, and I watched the chart move in the initially planned direction.

Recalling the proverb about “one sentence more terrifying than a demon” (鬼より怖い一文新値) (laughs)

This describes a pattern where prices briefly exceed a past high by a small amount (one “sentence” = 1 yen) and then immediately turn down, carrying a danger of a massive drop from there. This “one-sentence new high” is also called the “second peak,” and it’s a typical market scenario that even seasoned traders should beware of, since overoptimism can lead to big losses.

There is such an explanation.

With double top/double bottom chart patterns,

prices rise by just 1 pip (or fall by 1 pip) before reversing.

In breakout strategies, isn’t that equivalent to a “false breakout”?

An abrupt reversal right after entry,

heading toward stop-loss without a moment of unrealized profit—it's sad, isn't it?

Then placing the stop-loss (SL) at the most recent high/low,

touching the stop-loss by only a few pips, and then reversing.

A chart that then moves in the original direction... that was me this morning.

What’s even sadder is the “double reversal” move.

If the stop-loss is breached, and then you believe in a breakout and re-enter in the opposite direction... it quickly goes against you and results in a “whipsaw”… it damages your mental state as well.

Well, it’s the same old trading reality that continues to trouble us both now and in the past.

Since there’s nothing I can do about it, I’ll accept it and focus on the next trade!

Apologies for the venting, haha.

Until next time.

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