How to Stabilize with FX|Trade Changes Just by Deciding Your Settlement
In the world of trading, many people chase “trends.”
If you ride the trend, you can make a lot of profit.
It can move by hundreds of pips.
Indeed, that is true.
But there is one problem with that.
Trends are uncertain.
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The market does not always show a trend.
There are ranges.
There are false breaks (stop-outs).
It can end midway too.
In other words
trends become predictions.
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But there is one other inevitability in the market.
That is
settlement (closing a position).
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The market moves by orders.
And there are only two kinds of orders.
・New orders
・Close orders
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Many people look at new orders.
But the force that actually moves the market is
the close orders.
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Take profit
Stop loss
These two are bound to occur.
Because traders always close their positions somewhere.
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In other words
settlements occur reliably.
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As you continue trading,
you repeat similar trades over and over.
Among them, you gradually notice things.
What I noticed this time
was the idea of
“without settlement.”
To be honest, at firstI thought I was good at trend-following.
Going for markets that extend far.
Because I thought that was the proper thing for a trader.
There are trades that chase trends.
I do not intend to deny that.
But
it did not suit me.
While repeating the same trades,
I realized something.
Most of the profit I took
was not from trends.
Most of it was
the movement of closes.
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So I changed my thinking.
Rather than chasing the trend
I would focus on removing settlements.
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Settlements begin near the line.
Wicks appear.
Candles reverse.
Two confirmation bars appear there.
I take just 30 pips from the flow at that moment.
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There is no need to chase the trend.
There is no need to take a large gain.
But
justtake the flow of settlements that is certain to occur.
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Then the result becomes simple.
One time 30 pips
If you take that several times
you can reach 100 pips per day.
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Trading is often thought to be difficult.
But its essence is simple.
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Trends are uncertain.
Settlements are certain.
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The market moves on settlements.