Professor Hayashi in “Now is the time!” teaches the [Law of the Loser]: the reasons you lose were only “3”?

“Why do I always go against the trend here…?”

When you’re trading FX, everyone at some point experiences this kind of despair, right? I, too, in the past stuck to the chart and repeatedly entered without basis, becoming a lost soul in the “holy grail hunt” that wipes out funds in an instant.

Hello, I’m oukanoakari ✨ I usually engage with the market through day trading and scalping focused on 1-minute charts, making “being overwhelmingly patient” my weapon.

Actually, the other day I was watching a video by Shū Hayashi, famous for “Now is the time!”, andI was struck like being struck by lightning⚡️

In the video, Mr. Hayashi listed three “common traits of losers” that he derived from 47 years of experience.

Whether in entrance exams, business, or even in FX, the reasons for losing boiled down to these three.

Today, I’ll talk about applying these “three laws of losers” to FX, while also weaving in some big mistakes I’ve made in the past.

1. Does “information deficiency” create the pot-placing habit?

The first loser’s reason Hayashi listed is “information deficiency.”

In FX, “information” isn’t only news. What are the longer-timeframe trends on higher horizons? Are current oscillators not overheated? In the first place, with this capital, should I even place this lot?

During my losing period, I would only watch the tiny movements on the 1-minute chart and jump in with the intuition that “it looks like it will go up” (i.e., lack of information).

My trading style is “small losses, big profits” and “being overwhelmingly patient.” I wait thoroughly for the point where the odds are high—that is, where all information is aligned. Going into battle lacking information is like participating in a gunfight naked.

2. Do “preconceptions” cause a fatal (gradual loss big crash) effect?

The second commonality is “preconceptions.” Hayashi says that the idea that “this should be right” leads to losses.

For FX traders, this is a painful truth, isn’t it…?⚡️

“It should rebound here” “It should go up from here because it’s fallen this far”

In truth, I have a tendency toward perfectionism, and I overly trust my own technical analysis, sometimes thinking “my analysis can’t be wrong.”

As a result, I still sometimes make the mistake of delaying stop losses. In markets, there is no “absolute.” Believing in your analysis is important, but the moment the market moves differently, you should honestly admit that it was your preconception and cut quickly.

This is an absolute requirement for surviving.

3. Does “xx” turn the market into a casino?