【FX Course】Know the "Loss Pattern" before the Winning Pattern

Hello, this is Leo.

When you trade,

Many people think this way.

Of course, learning shapes that tend to win is important.

But I believe what’s even more important is

because the winning patterns may not work in certain market conditions.

However, with your losses,

the same habits tend to recur

over and over.

Loss trades have “causes”

When looking back at a losing trade,

some people stop at

“it hit the stop loss”

and end there.

If you look at it this way,

“Losing doesn’t mean a bad trade”

This is quite important.

For example,

and still ended up being stopped out.

This isn’t a terrible trade in my view.

In the market, even with all conditions met, you can lose.

Conversely, even if you happen to make a profit,

then, even if you win, you wouldn’t want to replicate it.

Look at the process, not the outcome

When reviewing trades, many people

This is what they look at.

But that alone doesn’t reveal improvement points.

Profit or loss comes after that.

Loss Pattern ① Chasing after moves

First ischasing after a movesince

This pattern, even though the direction is correct,

the entry position is wrong.

Loss Pattern ② Entering right before a high/low

Next most common is

For example, the direction may be correct.

But, there is a high just above.

From there, it rebounds and you get stopped out.

In this case, the direction wasn’t wrong.

Just looking at how far to the next high/low before entry can change things considerably.

Loss Pattern ③ Entering opposite to the higher time frame

If you only look at the 15-minute chart, it seems to rise cleanly.

But on the daily or 4-hour chart, it’s downtrend.

Buying in that state leads you to be caught by the pullback in the higher time frame.

This happens often too.

I think it’s important not to break this order of viewing.

Loss Pattern ④ Trying to recover

This is the most dangerous.

The first loss may have been just a normal stop out.

But the subsequent trades may be entered not by the market but by emotion.

If this happens, one loss can spread to three or four losses.

When facing a losing streak, you should look at not only the method but also the psychology

With a losing streak, it’s easy to think

“This method may be hopeless.”

But what you should first check is

for example, even with three losses in a row

then it’s more about how you use the method

rather than a problem with the method

Classifying losing trades reveals patterns

What I recommend is to categorize losing trades.

If you record this 10 or 20 times, you’ll clearly see where you are losing.

If, among 20 losses, 8 are from chasing entries,

That’s all you need to do.

Rather than increasing winning patterns, reduce the types of losses

When trying to improve trading,

you might want to add.

But I think the opposite.

Still, it can improve performance.

If it were me, I’d note the reason for losses in one line

Your trading diary doesn’t need to be lengthy.

That level of detail is enough.

What matters is that, when you look back later, you can see how many times you repeated the same mistake.

Hence,

Increase the good losses

A slightly odd way to phrase it, but in trading,

I think increasing the good losses

is also important.

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