Episode 2: How to Stabilize with FX | Trading Will Change Just by Deciding the Settlement
In the world of trading, many people chase the “trend.”
If you ride the trend, you can grab big profits.
Hundreds of pips can be gained.
Indeed, that is true.
But there is one problem there.
The trend is uncertain.
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The market does not always exhibit a trend.
There are ranges as well.
There are false moves (whipsaws).
It can end midway.
In other words
The trend becomes a forecast.
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But there is one more thing that is certain in the market.
That is
settlement (closing of positions).
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The market moves with orders.
And there are only two types of orders.
・New orders
・Close orders
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Many people try to look at new orders.
But the actual force that moves the market is
the close (settlement) orders.
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Taking profits
Cutting losses
These two are bound to occur.
Because traders will certainly close their positions somewhere.
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In other words
settlement will certainly occur.
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As you continue trading,
you end up repeating similar trades many times.
Among them, you gradually notice certain things.
What I noticed this time
was the idea of
“without settlement”
To be honest, at first
Go after markets that move strongly.
I believed that was the correct approach for a trader.
There are trades that chase the trend.
I do not intend to deny that.
However
it did not suit me.
As I repeated the same trades,
I realized something.
Much of the profits I took were
not from trends.
Most of them were
from the momentum of settlements.
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So I changed my thinking.
Not chasing trends
but removing settlements.
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Settlement begins near the line.
The wicks appear.
The candles reverse.
Two confirmations appear there.
I take 30 pips of that moment’s flow.
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There is no need to chase trends.
There is no need to take big profits.
But
only take the flow that will surely occur with settlements.
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Then the results become simple.
1 time 30 pips
If you take that a few times
you can reach 100 pips a day.
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Trading is often thought to be difficult.
But its essence is simple.
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The trend is uncertain.
Settlement is certain.
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The market moves on settlement.