To Those Who Cannot Cut Losses in Gold. The Reason You Keep Repeating "Wait Until It Goes Back"
Recently, I often hear people saying they "can’t cut losses."
I know I need to cut them.
But I don’t like realizing losses, so I wait just a little longer.
If it briefly comes back, I think, "It turned out I didn’t need to cut after all," and if it moves against me again, I hold on, thinking, "I’ve endured this far."
This time, I’d like to write for such people.
Before blaming yourself for not cutting losses, review your preparation before taking a position.
What I want to convey is that point.
“What happened before” becomes a reason to wait again
If you waited without cutting losses, it returned to breakeven. It even turned into a profit.
When you have that kind of experience, you tend to think, “Maybe it will come back again this time too.”
But what saved you last time and what is okay to hold this time are different things.
Whether gold will return or not, and whether you can withstand the price movement with your own funds, are separate issues.
Has the idea of “if I wait a little longer, it will come back” changed into “I need it to come back, or I’m in trouble”?
If you’re looking only at your purchase price or selling price rather than the market pattern, stop and think for a moment.
The reason you can’t cut isn’t only emotional
Some people think, if they can’t cut losses, that “I’m mentally weak.”
But aren’t you already holding a position at an amount you can’t even accept?
Wanting to take large profits from small price moves—when you raise the lot size with that mindset, losses move in the opposite direction just as much.
As the initially set cut-off level gets closer, the amount bothers you and you become unable to cut. If you then push the cut-off farther away, you may end up with an even bigger loss.
Instead of aiming to be strong at the moment you cut, start by adjusting to an amount you can actually cut with from the beginning.
This often allows you to change things more concretely.
Check in this order: cut level, loss amount, lot size
What I want you to reexamine are the following three things.
At what point in the reverse move do you retreat from that trade?
If you cut losses at that price, how much would the loss be?
Is the trade quantity such that you can accept that loss?
Do not start by fixing a larger lot size to make the loss appear smaller by forcing the cut-off closer.
For example, if 1 lot equals a contract of 100 oz and gold moves 10 dollars against your entry price,
0.10 lot would incur a loss of about $100 due to the price difference.
0.02 lot would incur about $20 for the same price move.
This is a calculation to illustrate how the mechanism works and is not a recommended lot size. Contract specifications vary by broker, and actual profit and loss are also affected by spreads, fees, and currency conversion.
Even with the same loss range, the amount you are willing to accept can be adjusted by you.
If lowering the quantity doesn’t ease your anxiety, skip it. First, confirm the procedure on a demo. That is also an option.
Translate the “loss cutting in your head” into an actual order
“I was planning to cut once I got this far.” But as it draws nearer, I end up waiting just a little longer.
If this happens every time, don’t try to protect yourself with just your feelings—set a stop-limit order at the time of the order, and develop the habit of checking whether the order is active.
Additionally, even after placing a stop-limit order, don’t remove or move it away just because you don’t want to admit the loss.
Also, placing a stop-limit order does not guarantee execution at the specified price. In sudden price moves, slippage may cause losses to exceed expectations. It’s important to understand the order conditions and execution mechanism and manage risk accordingly.
Even if you come back after cutting, it doesn’t mean you failed
Sometimes, after cutting losses, the price immediately reverses in the direction you expected.
It’s frustrating. But if you throw away the rule just because of that one instance, your judgments will wobble on the next reversal as well.
If you reflect, check not only whether it came back later, but also the rationale for entering, the withdrawal conditions you had set, and whether the lot size was appropriate.
If you are repeatedly cut at the same level, review the records and verify the rules. I think it’s important not to change the rules on the spot just because you want to recover a loss.
Therefore, I display not only the arrows but also the exit
After reading this far, you may feel, “I can verify amounts, but I don’t even know where to place my cut.”
To assist that decision, KURAMA GOLD SIGNAL PRO displays not only entry direction signs but also targets for take profit (TP) and stop loss (SL) on the chart.
Not only where to enter, but also where to finish, before you enter.
Check the loss amount that would move up to the displayed SL. If that amount is too large, reduce the lot size or skip the trade. I want you to use this in combination with that preparation.
Of course, adding indicators does not guarantee winning, nor does a line make you immune to losses. Also, showing TP and SL and having actual settlement orders in the account are separate things. Always confirm the actual order settings.
If you keep “enter vaguely and wait for it to come back,” use this as a tool to reassess such trades.
After confirming the display, you set orders and stop orders yourself. KURAMA GOLD SIGNAL does not place orders or settlements automatically.
To avoid vague entry and exit locations
Cutting losses is not to blame your forecast as wrong. It is an action to manage the risk of a single trade.
Therefore, check the exit before you enter and adjust to a trade quantity you can accept.
If you want to check gold entry candidates and TP/SL targets on one chart, see the details of KURAMA GOLD SIGNAL PRO.
Furthermore, for those who want to learn not only how to read signals but also my MA method and understand by asking questions on a chart, a complete set with materials and individual coaching is recommended.
It is summarized for those who want to learn not only the tools but also the mindset for decision-making. Please review the contents and choose the option you need.
※This article is intended for learning and product introduction. It does not guarantee profits or limit losses. There is a risk of losing capital in FX and CFD.
Details for the gold-only indicator are here
 KURAMA GOLD SIGNAL PROGold-specific | Check entry, take profit, and stop loss targets See product details → |
If you want to learn my MA method and personal coaching as well
 【Develop into a professional trader】Complete setGOLD x USDJPY indicator + my MA method + personal coaching See set contents → |