This article might be deleted soon.
I am a candlestick FX trader.
“Heaven and Hell FX Logic”has been released for 4 days now,
and many people have picked it up.
We also receive a lot of questions and compliments on a daily basis.
Now, this time, regarding frequently asked questions,
I would like to share them here.
One of the most frequently asked questions is
“What exactly does it mean to turn a loss into profit?”
In the manual for the “Heaven and Hell FX Logic,”
PDF file (63 pages)
・What you will need
・Specific entry conditions
・Specific loss-cut points
・Specific profit-taking points
・Method to turn losses into profits
・Step-by-step procedure to turn losses into profits
・How to enter automatically
・How to settle automatically
・How to automate from entry to settlement
・Procedures to automate
・How to automatically turn losses into profits
・How to achieve maximum performance with minimal effort
・How to scalp on a 1-minute chart
・About money management
・How to turn 100,000 yen into 5,000,000 yen in a year
・Methods for trading efficiently
・Recommended currency pairs
・Ways to further improve profits
・Quick reference table
・Finally
Inside this, there is a section・How to turn losses into profits, but
perhaps this item was not well understood.
Well, it makes sense, right?汗
Losses are losses and profits are profits,
and it is not surprising if you wonder,
“Why can losses be turned into profits?”
However, there is a good method to do so.
In this logic, it is explained.
I can’t go into all the specifics of the manual here, but
this time, I will share a little more in-depth.
If you’d prefer, this article can be removed immediately,
so please read it as soon as possible.
First, when does one actually incur a loss?
There are many trading strategies in the world,
and at least for myself,
I cut losses at a timing that differs from my own expectations.
Frequently, losses occur when the price moves a certain number of pips against you,
or you relentlessly average down,
or you endure emotions and finally cut losses,
there are various patterns.
However, losses, if they occur, must not be too late, but also not too early.
It is often said that losses must be cut quickly, but
if you cut too early and then price reverses,
you end up with unnecessary losses and a losing balance sheet becomes inevitable.
Many people fall into this trap.
You may have learned that cutting losses quickly is essential, but
even cutting too early makes it hard to keep your balance positive.
Therefore, losses must be executed not too late,
and not too early,
at the appropriate timing.
And this cannot be determined by fixed pip numbers or fixed amounts.
Volatility varies at any given moment,
and from the perspective of other traders,
they don’t care how much you lost.
Nevertheless, cutting losses according to your own loss in pips or amount is not market-compatible trading.
Therefore, I set a rule to cut losses at a timing that differs from my own expectations.
With this logic, incurring a loss means that moments have arisen when the market participants hold positions in the opposite direction to mine.
The moment when the market participants’ expectations and mine were opposite.
Therefore, at that moment, admitting my mistake and aligning with the market participants by taking a position in the same direction is possible.
Because it is the moment when the direction of market participants becomes clear.
The sequence of this flow, and trading without discretion, is what becomes
“・How to turn losses into profits”.
Now, let’s actually see what kind of trades these are.
This is a 1-minute chart.
Here,“Heaven and Hell FX Logic”rules-based trading was used,
without discretionand it is a logic that yields the same profits for everyone.
The red line marks profitable trades,
the blue line marks losing trades.
In the above chart, there has been only one loss.
However, you can see that it was recovered splendidly afterward.
Thus, even if your expectation differs and you incur a loss,
you should readily acknowledge your mistake and
not only that, but also follow the market participants’ moves
and make up for the lost amount.
This is how you recover the losses.
The important thing here is that your own thoughts and expectations are powerless in front of the crowd.
In the stock world, if you were a big institutional investor, the story would be different,
but in the FX world, becoming a big player is almost impossible—only central banks can.
Even central banks, depending on the market, may see reversals afterward.
The FX market is that huge.
Therefore, assuming from the start that your own thoughts and expectations are powerless in front of the crowd, and trading accordingly, will ultimately work better.
However, surprisingly few people can do this.
What I have learned,
or famous theories and strategies,
or famous indicators,
are often reasons for not being able to act in accordance with market moves,
as people cling to their own strategies or positions.
And often, the person themselves doesn’t even realize it.
Admitting losses is something that everyone dislikes.
Nevertheless, to profit in the market,
you must constantly do this unpleasant thing,
admit mistakes, and even if it tests your patience, follow the crowd.
This is quite stressful.
Even after trading FX for many years,
continuously admitting your own thinking mistakes while trading is more difficult than you think.
However, once you can do this, you can turn your balance positive.
And what makes this possible without discretion is what is explained in this manual.
I should note in advance that the current logic is not 100% winning.
Losing is natural.
However, the priority is to keep aligning with the crowd,
and because of that, you can always trade with an edge.
The ideas explained here are important regardless of whether you obtain“Heaven and Hell FX Logic”or not, so
please use this as a basis to view the market in the future,
as it may become a turning point in your market perception.
So, regarding frequently asked questions this time as well,
I’ve answered here because others may have the same questions, too.
Also, regarding this logic, after its public release,
it has attracted a lot of attention and
many people have already obtained it.
We are receiving so many questions and expressions of joy that we can hardly keep up with responses, but
“God-level traders”even introduced it,
and I want to ensure robust support,
and I absolutely do not want to neglect support.
On the other hand, I am selling this solo,
so I handle the development of the logic, support, and updates by myself.
Under these circumstances, time is limited.
Therefore, if support cannot keep up in the future and many people obtain this logic,
we may prioritize support and
consider restricting sales or stopping sales.
Also, to provide more robust support and to secure first-mover advantages,
we may also raise prices.
In simple terms,the more the product is sold,
the higher the price will rise.
So, while I cannot say how sales will progress,
one thing is certain:
if you are considering it, you should purchase as soon as possible.
I recommend obtaining it before sales stop or before a steep price increase.
If you want to constantly follow market participants and trade aiming for Heaven and Hell without discretion, please see this.