Changing the position style is a dangerous sign

The position for stop loss cannot be convinced, so broaden the change.

Because there is room in the account margin,

change the position created by scalping to a day trade,

change the position created by day trading to a swing,

change the position created by swing to medium-long term,

haven’t you had such an experience?

Aren’t you thinking that it’s okay because you’ve kept winning like that?

How long has that winning streak lasted, anyway?

If, with that method, your investment style has been winning in swing or medium-long term for two years or less, that is beginner's luck.

The reason is that in swing or medium-long term investment styles, beginner's luck can continue for 1 or 2 years. For foreign exchange movements, in about 1 to 2 years, they often move in similar ways. This is the scary part of FX. For shorter investment styles like scalping or day trading, it is almost impossible for a beginner to win for 1 or 2 years, and if you are still winning, you are an exceptionally talented person. In scalping or day trading, depending on the number of trades, beginner's luck lasts about 1 to 2 months, maybe up to 3 months.

A two- to three-month beginner's luck can be noticed quickly, but can you notice beginner's luck lasting 1 or 2 years? Moreover, when you start FX, beginners are advised to begin with swing or medium-long term investment styles because they are easier to win. This is because the shorter time cycles of scalping and day trading require more practice.

If you have continued winning with swing or medium-long term for two years without major mistakes, and you think, “Okay, I’ll quit FX while I’m ahead,” there would be few who would do so. It is natural to think, “Since I won for two years from the start, perhaps I have talent as a trader.” Then, when in year three you experience movements you have never seen, you think, “This unilateral movement is wrong! I can’t accept this!”, and because there is still margin capacity, you widen the stop loss to a level you can accept. By widening the stop lossnine times out of ten you may be saved. However, even if once you do not get saved, you lose the profits you have earned so far or more.

Do not bring a sense of justification to the market.

The market’s movement has nothing to do with your personal sense of justification.

“Unrealized gains are an illusion, unrealized losses are reality” is often said for a reason.

Right now, are you suffering with an unrealized loss bigger than you initially expected?

Even if the unrealized loss is larger than initially expected, if you still have the will to cut your loss, you should cut that position. Otherwise, there is a danger that it will grow so large that you will absolutely not be able to cut it by your own will. When that happens, the account will be in an end-stage condition, and of course you will not be able to cut losses by your own will, and the only thing you can do is pray that a forced margin call does not occur.