Translation: When you enter long, you cut losses immediately → to the person who then rockets up
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This is the most common losing pattern for beginners to intermediate traders.
And what makes it tricky is,
“the direction is correct,”
yet “you’re left behind every time.”
First, to say this outright,
this isn’t lack of talent or lack of sense.
Almost 100% of the time,
you’ve simply misjudged where to enter and where to exit.
Why does it rise right after you cut losses?
The answer is simple.
Your stop-out level is
- at the point where the most market participants are
- where professionals “pick up” opportunities
and that is where the market tends to move from.
This is how the market moves.
- Many people go long thinking “it’ll go up.”
- It dips a bit to provoke fear
- Those who can’t endure get stopped out
- That loss fuels the rise
In other words,
your stop-out becomes the starting point of the rise.
This is a common scenario.
The problem isn’t the “direction.”
Many people think this way:
If it goes the other way again
they think they have no sense
longing was a bad idea
but that’s not it.
The direction is correct.
What’s wrong is
- entry position
- how you place your stop
- judgment on when to be patient
These are the three issues.
Typical bad patterns
Be careful if they match.
- jumping in after it starts rising
- entering market order without waiting for a pullback
- placing a stop just below the recent low
- stopping out after only a small adverse move
This is,
the most easily hunted long pattern.
Solution ① “Wait for a pullback”
Start with this.
Do not enter while it’s rising.
For longs, consider:
- pullbacks to resistance levels
- returns to EMA/moving averages
- rebound after a brief sell-off
Enter after these kinds of “uncomfortable” patterns.
If you enter in a pleasing pattern, you’ll usually get hunted.
Solution ② “Don’t place your stop too close”
Beginners tend to
keep losses small!
and
put stops too close.
What happens as a result?
- you get stopped out by noise
- the direction is correct but you lose
- your mental state collapses
Stop placement should be
- where the structure breaks
- where the scenario is negated
and place it there.
It’s not about whether it hurts.
It’s about whether it serves a purpose.
Solution ③ “Enter again after you’re stopped out”
This is quite important.
Just because you were stopped out once
doesn’t mean it’s hopeless
and that the market hates you.
Many people think so.
But in reality,
the real setup often comes after that.
So,
- the same justification
- the same direction
- when the pattern agrees
enter again.
Only those who can do this survive in the markets.
People who don’t lose think this way
People who win think this way:
- one win/loss doesn’t matter
- keep entering in the right places
- being stopped out is within expectations
So,
loss → sharp rise
yet, your emotions do not move.
Just wait for the next opportunity.
Summary
People who long and get stopped out, then rise, are not
- the market moving against them
- not necessarily because they are wrong
They’re simply fighting in the “most easily hunted place.”
What is needed to win are
- wait for a pullback
- place stops in a structural way
- continue to look in the same direction even after being stopped out
That’s all.
If now,
- you get stopped out every time and it then goes up
- you can’t seem to win even though the direction is correct
- you’re afraid to increase your lot size
if you feel that way,
it isn’t that you lack talent.
You simply don’t know the mindset and the framework.
The market is viewed not with emotion but with structure.
To continue this further,
the more systematic version is in “FX Red Book” and “FX Code: If That Doesn’t Work, Give Up.”
It’s not about winning,
but about changing your mindset first.
If you want to rethink, please read.
It’s enough if it reaches the people who need it.