People who look at the numbers of unrealized profit and loss are more likely to let their FX settlements be driven by emotion【金額を見るな】の意味は「don't look at the amount」? Actually keep content: The instruction: convert standard decode before translate. Title: "
While you hold a position, you inevitably find yourself checking the profit and loss section on MT4 or the smartphone app many times. Have you ever experienced that?
When it becomes plus 3,000 yen, you feel a little happier, and when it becomes minus 5,000 yen, a heaviness settles in your stomach. Every time the numbers move, your emotions move with them, and before you know it you close the position at a point different from the one you initially decided.
In this article, we will think together not about methods or entry precision, but about how the numbers of money you see while holding a position affect trading. If you can relate to any part, I’d be happy if you take this as a cue to shift your perspective a little from today.
The numbers of unrealized profit and loss are not market information but a switch of emotion
First, it is important to note that the amount displayed as unrealized profit and loss on the screen is not information about the market itself.
Even with the same 20-pip price movement, the amount differs depending on the lot size. The chart pattern may be exactly the same, but whether it shows “+2,000 yen” or “+20,000 yen” can greatly change the impression you receive.
In other words, the money amount tells you not what the market is doing, but how your wallet is doing. And the moment money is involved, people naturally find it hard to stay calm.
The amount of unrealized profit and loss acts more asa switch that moves your emotionsthan as information about the market state. This is precisely why the more you look at it, the more your judgment tends to drift away from the market.
Small rewrites that happen every time you look at the amount
While you are staring at the amount, your mind may subtly rewrite your exit rules without you realizing it.
For example, before entering you might have decided, “If it reaches this level, take profit.” Yet the moment the unrealized profit shows “+8,000 yen,” you may think, “It’s already become enough to cover today’s lunch, so I’ll be fine.”
Conversely, when unrealized losses reach “−12,000 yen,” you might think, “If I cut now, I’ll lock in more than 10,000 yen in loss,” and gradually shift the stop-loss position.
Neither of these changes the market shape. What changed is only your own feelings toward the numbers you see.
Common inner voices when you are being pulled by the numbers
- “Let’s settle now since the amount is round-numbered.”
- “It was plus a moment ago, but it’s decreasing; I want to get out fast.”
- “This amount of loss is too big; I’ll wait for a bit more to come back.”
- “I don’t want to close until I recover yesterday’s losses.”
I don’t think these thoughts come from a weak will. Anyone naturally reacts when they see money. The problem might be whether such reactions intrude into the decision-making process for closing positions in that environment.
Small profits and large losses are easy to cause by how the numbers appear
In FX, people often talk about small profits and large losses. It’s the state where profits are small and losses become large, and I feel this is also deeply related to how the money is displayed.
The unrealized profit figure is painful to see shrinking. Because you don’t want to lose what you’ve gained, you want to lock in profits early.
On the other hand, unrealized losses are painful to lock in. While not yet realized, you might think “it could rebound,” so you want to delay.
When these two combine, the natural pattern is to win just a little and lose big. The more time you spend looking at the amount, the more you are exposed to this mental tendency.
Many people try to overcome small profits and large losses with sheer willpower or effort, butreducing the frequency with which you look at numbers that move your emotionsmay be a more sustainable approach.
What can be done to distance yourself from the numbers
So, how can you avoid being swayed by the amount? Here are some easy-to-adopt ideas.
Strategies to distance yourself from the amount
- Place take-profit and stop-loss orders at the same time as the entry
- During holding, focus on a pre-set price level rather than the profit/loss column
- Make it a habit to record results in pips or price width rather than in yen
- Decide a checking time in advance and don’t open the screen outside of it
Most importantly, the exit should be decided before entry. If you know where to enter, where to take profit, and where to cut losses as a set, you won’t need to rethink due to the money during holding.
Conversely, if you decide only the entry and leave the exit to situational judgment, you will be facing the screen’s numbers during holding. It’s natural for emotions to come in at that point.
Also, fixing a checking time is effective. If you decide exactly when to look, you won’t be shaken by the small fluctuations in between. It may feel uneasy at first, but many people gradually get used to it.
If the framework is decided first, there will be no reason to look at the numbers
To summarize so far, what’s needed to avoid being driven by money is not a stronger mind, but a state in which you don’t have to think about it while holding a position.
In Investment Skills Share, we have built a discretionary FX method over eight years and are teaching it as a complete set of entry, take-profit, and stop-loss patterns. Because the pattern is decided before entering, it’s designed to reduce the need to look at the profit/loss column and think during holding.
We also do not monitor charts obsessively; we check only during specific time periods. Because the times to look are fixed, you’ll naturally distance yourself from the numbers during those periods.
That said, simply knowing the pattern doesn’t instantly change habits. It’s common to stumble, such as looking at the amount or wanting to close before the predetermined point. For this reason, we offer one-on-one support customized to each participant’s situation through a buyer-only talk room and online calls. A full manual of the method is also provided, so you can return to it whenever you’re unsure.
As an added bonus, you can use all paid indicators and EAs for one account for free. While combining with discretionary patterns, you can find a way that suits you.
If you can’t help being drawn to the profit/loss column’s numbers and your planned exit keeps shifting, why not start by creating a state where you don’t have to look at the numbers at all before you begin adding more methods?
Summary of this article
- The amount of unrealized profit and loss is not market information but tends to be a switch that moves emotions
- Whenever you look at the amount, the predetermined exit rule is gradually rewritten
- Small profits and large losses tend to arise from how the numbers are perceived and how the mind moves
- Decide the exit before entry and fix the checking times to distance yourself from the numbers
- If the pattern is decided in advance, the very reason to look at the amount during holding decreases
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